Last week Google (GOOG) threatened to pull out of China, explaining that it has had enough of the government’s interference (both open and clandestine) with Google’s efforts to serve its markets while doing no harm. Whether the company will actually pull out or not remains to be seen.
The immediate beneficiary of the announcement was native competitor Baidu (BIDU), whose stock climbed 20% over the next two days. Baidu is in the portfolio of Cabot China & Emerging Markets Report, and subscribers are happy about that. (Interestingly, Baidu’s Chief Technology Officer resigned yesterday … coincidence?)
As for Google, I don’t mind if Google chooses to take the high road. Google is a very healthy company. It has cash. It is growing. It has many irons in the fire. And if it chooses to adhere to its mission to “do no evil,” shareholders should not be surprised.
But I’m wondering about the bigger picture.
As the Chinese government steers its country down the road of economic progress, it’s clear that the truth takes a back seat to the lunch basket, as well as the desire to enable its population to secure increasingly productive employment, and the desire to maintain its identity.
The Chinese don’t owe anybody anything.
The U.S. owes them about $800 billion.
And it’s important, when dealing with a trading partner who has a stronger position, to understand that partner’s values and motivations. I wish our politicians luck. And I continue to call for them to work to reduce that debt. So far, they’re not listening.
President Obama has pledged to give Haiti $100 million. China has promised $4.2 million.