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March 18, 2010

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Chinese firms seek redress from Google

GOOGLE'S Chinese advertising-resale firms have demanded clarity about its plans in China, as speculation increases over the conglomerate's future in the world's largest Internet market.

Their demand comes amid signs that Google Inc may soon move to close Google.cn, more than two months after it said it was no longer willing to offer a censored search engine.

Google and the Chinese authorities have been tight-lipped since then about any talks to reconcile their differences.

A letter purportedly from 27 Google-authorized sales representative companies says the wait has gone on for too long, eroding their business, scaring off employees and putting big investments in jeopardy.

"We see a constant stream of information but cannot predict the future, we see business sliding, but there is nothing we can do," says the letter, which was posted on the Website of China's central television.

"We are waiting now in incomparable pain and disquiet. When we ask Google for a response, we are told to wait. We can no longer wait."

Google had received the letter and was reviewing it, spokeswoman Jill Hazelbaker told Reuters.

Some of the signatories told the news agency that neither their affiliation with Google.cn nor the fight between Google and the government had hurt their business, although others acknowledged hesitancy by some customers.

"We don't want Google to pull out. We believe Google will give us a proper explanation," said a customer service manager, surnamed Sheng, at Suzhou Universal Internet Media.

The letter spells out demands for redress - for investors, employees and clients - that could add to the economic and political pressures on Google if it shuts down Google.cn and perhaps withdraws other operations from China.

The letter demands that Google develop a plan spelling out when customers' pre-payments for advertising will be returned to them, how employees of the advertising agents thrown out of work will be compensated, and how the companies themselves will be compensated for investments.

Addressed to Google's top executive for China, John Liu, it demands negotiations with the US company.

A Commerce Ministry spokesman on Tuesday warned Google to obey Chinese laws, including alerting the ministry to any exit plans.

Last night Google was still censoring search results.

"If Google withdraws from China, then most of us will face possible bankruptcy or close-down," the letter says.

"As requested by Google, we have invested huge amounts of capital and efforts into our businesses. How will Google compensate its resellers?"

Google Chief Executive Eric Schmidt said last week he hoped to soon announce an outcome from talks on offering an uncensored search engine in China.





 

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