About a week ago, Google announced its possible pull out from China. The announcement was made to end the cyber attacks on Google infrastructures originated from China together with an intention to affect on the Chinese government's policy over the censorship. However, Google´s short-lived revolt ended yesterday with the announcement of Eric Schmidt (CEO of Google) saying that there is "no withdrawal" from the chinese market.
Well then, what is this episode all about? That China now has grown so much that it is untouchable? Or that Google is not really a gigantic figure that we've been thinking of? Well, let's consider one by one. First, what is clear is that Google has set up a precedent. From now on, any foreign corporations running in China will have difficulties to raise their voices up. Google failed to achieve its objectives even with the back up of the White House, and its counterpart Yahoo. Then, who else can go for another revolt?
On the other side, does anyone know what is the status of Google in Asia-Pacific? According to the statistics provided by comscore, Google shares 67% of the search engines in the world. In Europe, this figure reaches at 79%. But then, situation changes radically in the Asia-Pacific region. Both in China and Japan, Google shares around 30% of the market. While Baidu china reaches 64% and Yahoo Japan of 50%. In Korea, situation is even worse. Despite the fact that Korea is the only country in the world where Google changed its opening page to attract the Korean internet users, Google only shares 2% of the market.
So, what I want to say? At least in the Asia-Pacific region, it doesn't really matter if Google provides services or not. Anyone who studied economics understands that high supply and low demand will only lead the company out of the business. This time, Google forgot about this basic economic model.