http://blogs.wsj.com/chinarealtime/2010/01/17/google-in-china-is-like-china-in-africa/
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China’s Ministry of Commerce spokesman Yao Jian Friday, responding to
questions about Google’s fate in China, made an interesting analogy:
Google in China is like Chinese companies in Africa.

What Yao tried to say was that similar to China as it has sought to
expand in Africa, Google has had to adapt to local rules in China. For
China as for Google (GOOG), he implied, this has not always been easy.

“Recently Chinese companies operating overseas have met with a lot of
problems…In Africa, [they relate to] how to respect the environment,
respect local employment, respect local unions, respect local
religion. These are all problems Chinese companies [expanding abroad]
face,” Yao said.

“Logically, these are constraints of the host country – Africa or U.S.
constraints [for example]. … The core goal is to comply with the laws
of the host country. Don’t create pollution for others. Don’t create
environmental problems for others. Africa is a green land. We need to
fix more of their roads, give them employment, education, health,
etc,” he said.

>From there, Yao then pointed out that China is still developing and
striving to build a “moderately prosperous society,” a phrase Chinese
officials often use to describe their desired level of social and
economic development. He said, “All foreign investors in China,
including Google, should comply with international norms, respect the
rules and regulations of the host country, respect the public interest
and legal traditions and shoulder social responsibility.” The
implication: Google by pressing its agenda could disrupt Chinese
society.

Yao’s analogy doesn’t quite work. Chinese investors in Africa are
involved in the extractive industry to bring oil and resources home to
feed the dragon economy; their operations are not embedded in the
domestic African market. Meanwhile, Google’s business is about getting
netizens in China to click into its search engine. It hinges on trying
to allow for the free flow of information in a major economy that is
attempting to transition from years of central planning but one where
the government still controls access to information.

China has yet to be tested in Africa on how it would deal with a
situation where a big Chinese foreign investor runs up against the
rules of its host country in such a fundamental way as Google has in
China.

When that happens, China may find, as Google has found, that investing
in a foreign country can be more complex than just following the
letter of the law.




-- 
Egosexual: Being turned on reading Ayn Rand.
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