Google´s retreat from China: Two competing theories

After four-year operation in China, the Internet search engine giant left the worlds most potential cyber market. The retreat has commonly been attributed to clashes between Googles belief on Internet liberty and Chinese governments policy on Internet censoring. Two theories held by Google and China are competing with each other to explain the leaving. Evidences of “highly sophisticated” cyber-attacks intended to gain access to the company´s software code and the e-mail accounts of dozens of human rights activists, and the further limitation of free speech on the web in China including the persistent blocking of law breaking content and websites such as Facebook, Twitter, YouTube, Google Docs and Blogger all violated Googles core corporate value, the Dont be Evil motto. On the other hand, Chinese government argued that Internet censorship is practiced around the globe, and Google should have been aware of the policy before entering China market. The retreat, therefore, should be attributed to some other economic and technical factors. This study compares these two competing theories and analyzes the logic behind them from various perspectives. Systematic integration of the two theories as well as their underlying perspectives would provide insight for Western Internet companies who wish to operate in China market.