Google In China: More Fallout

Google China

It’s now been six days since Google (NSDQ: GOOG) issued its China manifesto — and the repercussions continue. Here’s a round-up of some of the latest developments:

» It’s possible that the attacks on Google’s network, which led the company to threaten to pull out of China, were an inside job. *Reuters* cites sources who say that Google is trying to determine whether the attacks “may have been facilitated” by China-based employees. Google isn’t commenting.

» Google will hold talks with Chinese government officials in the “coming days,” presumably to determine whether the company can continue to operate its search engine in China even if it does not censor results, according to Marketwatch. Meanwhile, the Chinese government isn’t showing any signs of bending. The state-run China Daily has two critical editorials today, one of which refers to Google’s actions as a “corporate maneuver.”

» More executive turnover at Baidu (NSDQ: BIDU), which likely stands to benefit the most if Google pulls out. CTO Yinan Li has left the company for “personal reasons.” That sounds suspicious, especially considering that Baidu COO Peng Ye also left for “personal reasons” just ten days ago. What may be behind the departures? Baidu’s site was hacked last week. Also, the roll-out of the company’s new ad system reportedly hasn’t gone as planned.


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