Google vs. China: The end is near…maybe

Image by AFP/Getty Images via Daylife

The Chinese government appears to be prepping for the fall out—by aggressively downplaying it.

Meanwhile, in a letter published by state broadcaster CCTV, 27 Google advertisers said they wanted news now.

The Washington Post reports:

The Chinese government on Tuesday appeared to set the foundation for Internet giant Google to pull out of the country, with one spokesman contending that the company’s potential departure would be an “individual business act” and another warning Google to obey Chinese law whether it leaves China or not.

The comments — by the spokesmen for the Ministry of Foreign Affairs and the Ministry of Commerce — followed strong indications that Google, which has been locked in a dispute with the Chinese government over censorship, was preparing to leave China.

Chinese online advertisers are advising their clients to switch their accounts to Google’s Chinese competitor, Baidu. And government officials from several ministries have privately predicted that Google soon would shut down its operations.

Shares of Google fell nearly 3 percent in regular trading Monday to close at $563.18, Reuters reported. Shares of Baidu, the No. 1 search engine in China, rose 4.8 percent, to $576.84.

via China appears to be preparing for Google departure – washingtonpost.com.

Advertisers aren’t pleased, as WSJ.com reports:

A group of Google Inc.’s partners in China have sent a letter to the Internet giant, saying their businesses are in jeopardy if Google closes its Chinese search engine and demanding to know how they will be compensated. The company said it received the letter and was reviewing it Tuesday.

Read the whole letter here.