Google’s Ultimatum to China Draws Lawmaker, Activist Praise

Lawmakers, some of whom have been critical of Google’s decision to enter China, generally backed its decision, as did tech groups. A Senate subcommittee also confirmed it will hold a hearing on Internet freedom next month. And a source close to the Global Network Initiative, a group including Google, Yahoo and Microsoft that developed a code of conduct for Internet companies operating abroad, said it had finally chosen an executive director (WID Dec 7 p2) but couldn’t yet name that person.

At least 20 other large companies from the Internet, finance, technology, media and chemical sectors were similarly targeted in attacks traced to China, Drummond said. A “primary goal” appears to have been accessing the Gmail accounts of Chinese human rights activists, though the contents of e-mails haven’t been breached, he said. Google’s investigation also found the Gmail accounts of “dozens” of activists in the U.S., Europe and China have been “routinely accessed by third parties” through malware, Drummond said. The company has been wary of attempts to “further limit free speech on the Web” in the past year as well. “Over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all” -- and Google is ready to leave China if not, Drummond said.

The steps Google has taken -- laying out a cause of action, proposed remedy and exit strategy -- aren’t “outlined” in the Global Network Initiative “but are certainly within the spirit,” a Google spokesman told us. Its blunt demand to China on Google.cn search results isn’t a “vindication or a bad sign, but a sign that [the initiative is] highly important as these kinds of censorship efforts increase.” The China-sourced attacks and increasing limitations on free speech online “have led us to conclude that we are no longer comfortable self-censoring results in China,” he said.

Twitter lit up with comments and retweets all day using the #GoogleCN hashtag. One said just before 3 p.m. ET, presumably referring to Google China, “employees already forbidden access to code. Interns went home. All full-time staff discuss severence [sic].” The author identified himself as Le Wang, a China-born designer and photographer now living in Chicago. Wang told us he had retweeted and translated the claim from Chinese Twitter users.

It’s not clear what other companies may have been affected that Drummond mentioned. A Microsoft spokeswoman told us it had “no indication that any of our mail properties have been compromised.” An eBay spokeswoman said neither the auction giant nor its Paypal company were affected. A Yahoo spokeswoman said it hasn’t had operational control over Yahoo China since it sold the company to Alibaba in 2005 and took a 39 percent ownership stake. But Yahoo “stands aligned with Google that these kinds of attacks are deeply disturbing and strongly believe that the violation of user privacy is something that we as Internet pioneers must all oppose.”

An aide to Senate Human Rights Subcommittee Chairman Dick Durbin, D-Ill., told us the subcommittee was already working on scheduling a February hearing on Internet freedom when Google made its ultimatum. Pressure from Durbin at a 2008 hearing quickened the pace of work to develop the Global Network Initiative (WID May 21/08 p1). Secretary of State Hillary Clinton said Google had briefed the U.S. on its allegations, “which raise very serious concerns and questions. We look to the Chinese government for an explanation.” Clinton said she'll give a speech next week on “the centrality of Internet freedom in the 21st century.”

Google’s move “should serve as an example to businesses and governments,” said House Speaker Nancy Pelosi, D-Calif. Given the Chinese government’s control over the Internet, “it is essential that technology companies not assist in efforts that violate human rights or prohibit the free exchange of ideas,” she said. “When Google went to China, it seemed to forget all about its quirky corporate slogan, ‘Don’t be evil,’ but two cheers now for deciding that making a fortune there may not be worth the cost of accepting the routine oppression that passes for governance in China,” said House Commerce Committee Ranking Member Joe Barton, R-Texas, calling the alleged Chinese hacking “hardly surprising.” The possibility that Google could leave China is “appropriate, if belated,” and its demand to be able to show unfiltered search results is “a great leap forward for freedom,” said Barton, also co-chairman of the House Privacy Caucus.

Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., said the Google incident showed “cyber attacks are increasing exponentially, and we need to get serious about America’s cybersecurity.” He said he intends to mark up his cybersecurity bill “early this year."

The Center for Democracy and Technology supports Google’s “bold and difficult step for Internet freedom in support of fundamental human rights,” Executive Director Leslie Harris said. Though the group has always supported “the presence of Western companies in these difficult markets” precisely because they are more protective of users than domestic companies, they must “constantly evaluate” whether government demands “make it impossible to operate ethically,” she said. Harris told us later that Google’s public ultimatum, as opposed to quiet negotiation, isn’t a “blow” to the Global Network Initiative. The initiative’s principles ask companies to assess the human rights impact of providing services, she said: “If a company believes it can no longer limit that risk, deciding to leave a country is perfectly consistent with the principles."

The Chinese government’s decision to back off its Green Dam filtering software program (WID Aug 17 p5) may be a good sign for another reversal, the Computer and Communications Industry Association said. That incident showed “it does understand the consequences of pursuing censorship to the point of violating trade agreements.” As the government gathers information to make a decision on Google’s demand, “we would encourage that they look at the issue holistically with government, economic and trade officials involved in the decision,” said CCIA President Ed Black.

Global Network Initiative co-founder Rebecca MacKinnon said Google was “living up to their ‘don’t be evil’ motto, much mocked of late,” and commitments under the initiative. “They are sending a very public message -- which people in China are hearing -- that the Chinese government’s approach to Internet regulation is unacceptable and poisonous.” Mackinnon, who’s writing a book on China’s “cybertarianism” and speaks Chinese, said the “Chinese Twittersphere” was “generally cheering the news,” though some leading bloggers are worried Google’s exit will harm the dissident movement.

Not all commentators were ready to believe Google’s justification. TechCrunch’s Sarah Lacy said Google knows it can’t make up the distance with Chinese search leader Baidu, so the company is “turning what would be a negative into a marketing positive for its business in the rest of the world.” Google is “ready to burn bridges” by putting the Chinese government in the spotlight “in a public, English-language blog post,” she said. With Google’s likely exit, Chinese Web companies with “huge cash hoards” could take an interest in U.S. startups: “Will the Valley’s rhetoric stick then?"

China’s regulatory agencies, including the Ministry of Commerce and the China Internet Network Information Center (CINIC), are looking into the matter, several Chinese bloggers on Internet issues said. Google might have thought about quitting China as early as 2008, said Bo Hong, chief editor of DoNews, one of the blogs. The company might still place a research center in China if it decides to pull out of the nation, but India might be a better place, he said. CINIC is the administrative agency responsible for Internet affairs under the Ministry of Information Industry of China. Meanwhile, a day after Google’s announcement, China’s State Council urged integration of the nation’s telecom, broadcast media and Internet as quickly as possible, a statement said. It’s uncertain if Google’s move is related to that development, some Chinese bloggers said.

The move won’t affect Google’s ongoing negotiations with the Chinese Writers’ Association, the group said. The group claimed Google’s plan to scan books into digital library accessible to anyone with an Internet connection is a copyright violation.

Xingdong Fang, founder of China-based Internet research firm Chinalabs, said it would be a big mistake if Google pulls out of China altogether. Adapting to the regulatory environment in China is a challenge for companies like Google, but the search giant could customize its strategy for the Chinese market, he said, saying Google can’t be replaced by any search companies in the area of advanced search in China. Additionally, China is a crucial market for Google’ operating system and mobile expansion, he said. Operator China Mobile has already launched several smartphones running on Google’s Android system and is planning many more in partnership with various handset makers.

Even as a potential beneficiary, Google’s biggest competitor in China, Baidu, would have to deal with antitrust review by the Chinese government if Google quits the Chinese market, Fang said. By the end of 2009, Baidu had about a 63 percent share in the Chinese Internet search market, while Google had 31 percent, according to Chinese Internet research firm DCCI. But the absence of Google would be good news for Chinese Internet portals like Netease.com, Sohu.com and Tencent Holdings -- all of which have their own search engines with negligible market share, some analysts said.