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Ask Google? How to win in China ... without being evil

Greed is not the only thing driving the Silicon Valley giant’s foray into the Middle Kingdom. China’s vast market and next generation talent could be key to developing the technology of the future. Time for a Faustian pact?

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The former Google China headquarters in Beijing. Photo: AFP

The Silicon Valley start-up that conquered web search, mastered online advertising and built a self-driving car now faces a challenge it may not be able to solve: how to win in China without losing its soul.

Twenty years after its founding, Google sits in an enviable position by almost every measure – with record profits, a supremely talented workforce, billions of dollars in excess cash on hand, and dominant market share in most of the world.

But in its mission to “organise the world’s information and make it universally accessible,” Google has had minimal impact in the largest market on earth: mainland China and its nearly 800 million internet users.

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This has long flummoxed Google’s founders Larry Page and Sergey Brin, who see China as a font of future profits, certainly, but also as a deserving beneficiary of the information revolution they have helped bring about worldwide.
A Google self-driving car at the firms’ headquarters in Mountain View, California. Photo: AFP
A Google self-driving car at the firms’ headquarters in Mountain View, California. Photo: AFP

Under CEO Sundar Pichai, Google is going after China head on, albeit with a typical Googley mix of secrecy and intrigue. According to media reports that draw on confidential internal documents, the company is now developing a search engine and news aggregation app that will comply with the Chinese regime’s strict censorship laws. The closely guarded project, code-named Dragonfly, adds to recent moves Pichai has made towards China including the creation of an artificial intelligence lab in Beijing, investments in Chinese companies, and meetings with top Communist Party officials.

Internal Google message boards reveal that some employees feel stung by Dragonfly; several have transferred to other roles or quit rather than work on the project, which they view as a “censorship engine” and a betrayal of the company’s ethics. Other employees noted, however, that boycotting China did little to change the situation.

Under CEO Sundar Pichai, Google is going after China head on. Photo: AFP
Under CEO Sundar Pichai, Google is going after China head on. Photo: AFP
Google has of course tried to set up shop once in China already, and retreated. In 2006, after an intense months-long debate inside the Googleplex, the company announced that it would launch a censored version of its search engine in China, rationalising that it was better to abide by the government’s restrictions than not serve Chinese users at all. “We even did an ‘evil scale’,” said then CEO Eric Schmidt, referencing the company’s unofficial motto, “Don’t Be Evil.”

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