Running head: CASE ANALYSIS: GOOGLE IN CHINA 1

Case Analysis: Google in China

Name of Student

Institutional Affiliation
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Case Analysis: Google in China

Business Situation

Google’s entrance into China’s search market led to commotions, not only in the sector

but also within the Chinese government. As a result of globalization, Google sought to exploit

opportunities in Chinese markets, but the business could not reach full throttle due to the

government’s demands for content censorship. Google made several attempts to provide search

services while allowing government agencies to filter the content as per China’s laws (Eby,

2011). Abiding by these laws, however, caused service problems and Google redirected its

hosting to Hong Kong servers, which are not limited by China’s censorship decrees. Despite this,

China’s government went above and beyond to hack and compromise Google’s operations. Even

after encountering these lags, Google engaged the Chinese government in negotiations

attempting to induce policy changes. The government was, however, unyielding on account that

a foreign power seeks to influence its governance. In this entire scuffle, China was in a dilemma

as much as Google (Eby, 2011). The foreign company promised economic progress, but the

government was riddled by the fact that accepting Google’s terms would require no censoring of

content.

Cultural Differences between China and the US

Google and the Chinese governments are in constant dialogue as the former attempts to

find a niche to gain permission to distribute uncensored content to its users. Pew Internet &

American Life Project posted survey findings for data gathered between 2000 and 2007, which

revealed that 80% of the Chinese believe in censorship and content control over the internet

(Eby, 2011). Further, the same survey reported that 85% of the Chinese participants want the

government to oversee censorship activities. According to Bodycott and Lai (2012), the
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decisions and actions of Chinese professionals and officials are influenced by traditional

Confucian ideals and values. In the case with Google, the Chinese government rationalized its

decision to censor content is to foster harmony in the overall community, including the state and

its residents. A characteristic of traditional Chinese values is to avoid conflict and promote peace

in all situations. American citizens, e.g., Google owners, perceive the actions of China’s

governments as violations of fundamental privacy rights. Balkin (2009) acknowledged that

societies are transitioning into the digital age and the constitution was amended to protect

opinions, ideas, and innovations of individuals. In this regard, the circumstances around Google

and China’s censorship policy are manifestations of two different cultures colliding.

Potential Issues in China’s Censorship Policy

Despite the noble endeavor to protect the peace and harmony of the community, the

censorship policy that the government continually enforces has repercussions on the quality of

service. According to Eby (2011), Google opted to predict content that the government would

filter and isolate them from a user’s search results. In this regard, the censorship laws led to

voids in the information and manifested as a tool the government enlisted to control the content

that the Chinese citizens can access. This situation led to the loss of considerable market shares

as Google could not keep up with the local competition. From the critics’ perspective, Google

was infringing the fundamental freedom to expression among its frequent users. Censorships

meant that the government filters and blocks any and all information that appears to exceed the

imposed restrictions.

Merits to Using Hofstede’s Cultural Dimensions in Business

As local markets swell with new businesses, crowding is inevitable. Time has reached

where startups and even established businesses lack opportunities to explore within domestic
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markets due to cutthroat competition and unmanageable costs. Rapid globalization has provided

a chance for even small and medium-sized enterprises to penetrate foreign markets. Despite

opportunities, adapting to the conditions of the international markets is a hurdle that all

businesses must confront and overcome to realize success. According to Caprar et al. (2015),

Hofstede’s dimensions of national culture provides a rigorous framework for examining

differences in nationalism amongst countries. In business, organizations can utilize the same

framework to identify significant differences in cultures and adapt accordingly. For example, an

American company could use the tool to investigate China’s markets and localize its processes.

In this way, the company can refocus its strategy to include the needs of consumers in the foreign

market and expand its customer base.

An argument for Google’s Action

Google is guided by its philosophy, “do no evil,” where the company always seeks to

impact others positively rather than cause damage. Following the case in China, Google handled

the situation both creatively and ethically. Any other company would have pushed through

China’s internet firewall and served the locals with unrestrained content. Such conduct would

only further the conflict between the two parties and might escalate to a disagreement between

nations. According to Wild, Wild and Han (2008), international trade is facilitated through

compromise and Google, from the beginning, aimed to uphold the requirements of China’s

censorship policy. When the government remained immovable in the negotiations, Google

redirected to Hong Kong to escape the restrictions on the mainland. Even so, the government

followed, and the American company had to refrain from offering the Chinese any search-related

services. Although the company is allowed to render other internet services, the scope is limited

to non-search activities.
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References

Balkin, J. M. (2009). The future of free expression in a digital age. Pepperdine Law

Review, 36(2), 427-444. Retrieved from

https://digitalcommons.pepperdine.edu/cgi/viewcontent.cgi?article=1079&context=plr

Bodycott, P., & Lai, A. (2012). The Influence and Implications of Chinese Culture in the

Decision to Undertake Cross-Border Higher Education. Journal of Studies in

International Education, 16(3), 252-270. doi:10.1177/1028315311418517

Caprar, D. V., Devinney, T. M., Kirkman, B. L., & Caligiuri, P. (2015). Conceptualizing and

measuring culture in international business and management: From challenges to

potential solutions. Journal of International Business Studies, 46(9), 1011-1027.

doi:10.1057/jibs.2015.33

Eby, C. E. (2011). Google in China: finding creative solutions to cultural

differences. Proteus, 27(1), 57.

Wild, J. J., Wild, K. L., & Han, J. C. Y. (2008). International business: The challenges of

globalization. Upper Saddle River, N.J: Pearson Prentice Hall.