Will China suffer if Google leaves?
Google has suggested it may well close its Chinese operation after the company recently encountered wave after wave of cyber attacks. The US government has joined the fray today suggesting that the Chinese authorities need to work with Google on security and creating an environment in which Google and other US companies can proposer. There is the potential for some significant political fallout which could impact upon China's position in world trade market and weaken the economy.
Even though it has been obvious for some time that China, and other countries around the world, do not wholeheartedly support the Internet it is a vital element of the worldwide trade market and here to stay. Whether the Chinese authorities can come to an agreement with Google, and other US companies which may well follow suit and leave the country, remains to be seen but this saga has the potential to take a significant turn for the worse.
It took US companies many years to gain access to Chinese markets and over the last decade trade agreements have been signed and the former frosty relationship between the two had thawed somewhat. Whether they will be able to overcome this recent setback remains to be seen but the US needs China as much as China needs the US.
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