WORLD REGIONS

August 19, 2013

Alibaba buys into California eCommerce company

Chinese eCommerce giant Alibaba has continued its relationship with Yahoo and gained another foothold in California with its recent investment in ShopRunner, run by former Yahoo Chief Executive Scott Thompson, Shoprunner is an ecommerce firm based in San Francisco with existing relationships with many major brand names. They are growing fast with orders in 2012 increased two and a half times more than in 2011.

Alibaba, which is planning for an IPO later this year is reportedly paying $75 million for a minority stake in ShopRunner, While Mr. Thompson is no longer at the company, Yahoo owns almost a quarter of Alibaba so some relationship apparently persisted.

This is said to be one of many purchases Alibaba is making in advance of their IPO on the Hong Kong Stock Exchange, that is expected value the firm at $60-$100 billion. The move has not been without controversy. A Hong Kong journalist recently quit her job in a controversy over disputed remarks that Jack Ma, founder of the Alibaba Group, is said to have made in support of Beijing’s violent crackdown on Tienanmen Square protesters in 1989. Mr. Ma denies he said that but the newspaper is sticking to the story and it apparently caused quite a stir in Hong Kong.

Alibaba began in 1999 as a business-to-business portal to connect Chinese manufacturers with overseas buyers. It has since become the biggest eCommerce system in the world, with with sales more then Amazon and eBay combined. The planned IPO will likely secure its position as a global powerhouse in eCommerce for many years to come.

Filed under China, Internet, Mergers and Acquisitions by

August 6, 2013

SpaceX awarded contract with Canada Space Program

Spacex, a private sector space exploration and technology company based in Hawthorne, California, has been awarded a contract for Canada’s largest space program.

The program is the ADARSAT Constellation Mission, which is designed to provide maritime surveillance, disaster management, and ecosystem monitoring capabilities. This wil provide Canada with the ability to monitor polar ice conditions, oil pills, ship movements, forest fires, wetlands and coastal changes.

The contract with Canadian space company MacDonald, Dettwiler, and Associates will transport three satellites to orbit in 2018. “SpaceX appreciates MDA’s confidence in our ability to safely and reliably transport their satellites,” said Gwynne Shotwell, SpaceX President and COO. “We hope this agreement is the second of many with MDA”, the company said in a press release.

SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets.

Filed under Aerospace and Aviation, Canada by

August 2, 2013

China hasn’t paid Hollywood studios since last year

California movie studios haven’t been paid for movies shown in China since late last year, according to an exclusive report by The Hollywood Reporter. This situation only gained wide attention recently because because China will likely become the largest moviegoing market in the world before too long and the studios have been quiet about it because they want to preserve the relationship

The dispute apparently centers on a new two percent value-added tax that the Chinese want the studios to pay. For their part, the studios claim that the additional payment would violate a World Trade Organization agreement that was made just last year between the U.S. and Chinese goverments.

According to the Hollywood Reporter estimates: Warner Brothers is owned about $31 million for Man of Steel, The Hobbit: An Unexpected Journey and Jack the Giant Slayer; Sony is due about $23 million for Skyfall and After Earth ; Paramount would be owed roughly $30 million for Into Darkness, G.I. Joe: Retaliation and Jack Reacher; Disney’s Iron Man 3 made more than $121 million in China, which would mean a return of more than $30 million for the studio, while Oz the Great and Powerful would mean about $5 million in payments.

Several other movies are in he middle of their run, and some studios are still owed money for 2012 titles as well. For example, Fox hasn’t received payment for Ang Lee’s Life of Pi, a check that’s expected to earn about $23 million.

Movies are, of course, one of California’s primary exports, and in a country where bootlegging and copyright infringement is commonplace, it is difficult to understand China’s justification for withholding payments. If the situation was reversed, and California suddenly decided to stop payments for Chinese manufactured goods, it is hard to imagine that it would be considered acceptable by the Chinese. This seems like a case where China is using its market size leverage to an unfair advantage, and it is certainly something trade officials and policy makers should keep an eye on.

Filed under China, Hollywood, Media and Entertainment by

July 25, 2013

California shark fin ban now in effect

California’s law that prohibits the sale, possession, trade, or distribution of shark fins went into full effect on the first of this month ending the Chinese custom of serving shark fin soup in California restaurants.

The legislation went into effect in January, but had exemptions allowing the sale of previously obtained shark fins until the end of June. Anyone now caught violating the law could face a penalty of up to six months in jail and a $1,000 fine.

the law caused a controversy between environmentalists, concerned about the declining shark population and some Chinese-Americans, who want to continue to honor this Chinese tradition. The soup is an expensive delicacy, has been popular in China since the Ming Dynasty, and is often served during weddings, banquets and other Asian ceremonies.

As reported in the Los Angeles Times, however, it is thought that close to 73 million sharks are killed for their fins each year. Many, are obtained by the process of finning – slicing the fins from live sharks and throwing the disabled animals back into the ocean, where they drown. The market for shark meat is nowhere as great as for the fins, the Times reported, and demand for the fins has reduced some shark populations to 10% of historical levels.

Filed under Agriculture and Food, China, Environment and Climate by

July 24, 2013

California Food and Agriculture Head to lead Trade Mission to Vietnam and China.

State food and agriculture secretary Karen Ross will lead a trade delegation to China and Vietnam in September, according to a press release issued by the California Deparment of Food and Agriculture. She will be leading an agricultural trade delegation to China and Vietnam from September 16-21, 2013, as part of the California State Trade and Export Promotion program.

This mission will visit Shanghai and Ho Chi Minh City with the goal of providing export business opportunities for California farmers, ranchers and food processors. The new California-China Trade and Investment Office in Shanghai, opened by Governor Brown during his trade mission, will help coordinate this mission by facilitating links between California businesses and Chinese counterparts who have shown interests in purchasing California products.

Funding for this trade mission will come from a grant administered by the U.S. Small Business Administration. Companies interested in participating in the trade mission should contact the Fresno Center for International Trade Development at (559) 324-6401or visit www.fresnocitd.org, The full press release can be read at this link:

http://www.cdfa.ca.gov/egov/Press_Releases/Press_Release.asp?PRnum=13-019

Filed under Agriculture and Food, China, Vietnam by

December 3, 2012

Golden Gate Ventures forms Strategic Alliance For Asian Startups

Venture Capital firm Golden Gate Ventures and JFDI.Asia have announced a new strategic alliance that will focus on supporting early-stage digital startups, according to a report in TechCrunch. The program will include intensive mentoring from both early-stage funding specialists to help companies gain market traction.

Golden Gate Ventures has offices in Singapore and San Francisco operates a seed investment program for digital start-up companies that have already launched. Based in Singapore, JFDI.Asia’s accelerator “bootcamp” program takes teams of entrepreneurs from idea to investment in 100 days.

Golden Gate Ventures co-founders Vinnie Lauria, Jeff Paine and Paul Bragiel have joined JFDI.Asia’s bootcamp as mentors. Lauria said in a joint statement that “the next billion people are coming online in our region. It’s a huge opportunity and an equally huge pool of talent in the region is set to make the most of it.” Hugh Mason, co-founder of JFDI.Asia, said that he hopes the partnership will be “the first of several alliances with key partners across the region who share our ambition to support the coming generation of digital success stories across Asia, for Asia.”

Filed under Asia, Singapore, Venture Capital by

December 2, 2012

Concerned about a brain drain, Taiwan recruiting California students

Taiwan’s minister of education, Wei-Ling Chiang, traveled to California in October, and one of the issues he addressed was and imbalance in the numbers of university students being exchanged by each country. “Just 3,561 American-born students are enrolled in Taiwanese universities, while about 24,000 Taiwanese students enroll in universities in the U.S,” Chiang said. “We really have to address the situation now.” According to a report in the Los Angeles Times, Taiwanese education officials are renewing their efforts to enroll more international students and have opened a dozen Taiwanese college information centers have opened in nine countries in the last few years.

Taiwan’s university recruiters have begun to target a new demographic according to the report: the Taiwanese American teenager. The pitch was perhaps more attractive to parents of the second- and third-generation Taiwanese American students who were the targets of the enrollment push. “Your children will enjoy a high quality education while learning about Taiwan’s culture,” said Chiang, a Stanford graduate. About a thousand people attended the first Taiwanese education fair in the U.S., held in October at the Chinese Cultural Center in El Monte that had been advertiseed in local Chinese language radio and television stations.

While their children didn’t always agree, the idea of a Taiwanese education appealed to parents who believe their children will graduate into a job market increasingly dominated by Asian languages and businesses.

Filed under Education and Training, Taiwan by

October 22, 2012

China investment in California predicted to soar

China’s direct foreign investment in developing economies is on the increase, and California could be uniquely situated to benefit from this, according to a report by Rhodium Group, a New York based economic think tank.

Already, about $1.3 billion of Chinese money has flowed into the California from 2000 to 2011, and this amount to increase to between $10 billion and $60 billion by the year 2020. “Just as Chinese exports exploded in the last decade—from $250 billion in 2000 to nearly $2 trillion by 2011—China’s OFDI is poised to skyrocket in the years ahead”, according to the report.

It went on to conclude. “California, with its long history with China, the most sizable Chinese American population in the country, and more inward investment deals from China than any other state, is in a position to lead the nation in attracting Chinese investment in the decade to come”. The full report can be downloaded from a link on this page:

http://rhgroup.net/reports/chinese-direct-investment-in-california

Filed under California Economy, China, Economic Development by

March 31, 2011

Stanford to open center in China

As reported in the San Jose Business Journal, Sanford University plans an early 2012 opening for a center in Beijing that will serve as a headquarters for faculty and students conducting research in China and as an impetus for more collaboration between Asian and American scholars. The $5 million project will be paid for entirely from gifts made to the Stanford.

The Stanford Center at Peking University will be an architectural combination of east and west, according to university officials. A presentation on the new facility by Coit Blacker, director of the Freeman Spogli Institute for International Studies at Stanford, is scheduled Thursday for members of the university’s Faculty Senate.
Seven university departments — including the School of Medicine’s Asian Liver Center, the Bing Overseas Studies Program and the Center for Sustainable Development and Global Competitiveness — have committed to establishing a presence at the new center.

“China’s position as a global economic leader means that the university should be at the forefront of helping our students and faculty better understand the country’s policies, culture and views while at the same time forging intellectual ties with its brightest and most important thinkers,” Stanford President John Hennessy said in a statement.

Read more

Filed under China, Education and Training by

March 29, 2011

U.S. Commerce Secretary Gary Locke Takes Export Tour to Los Angeles

From the U.S. Department of Commerce blog:

U.S. Commerce Secretary Gary Locke traveled to Los Angeles, Calif., today for the second stop of the New Markets, New Jobs small business outreach tour.  Joined by Los Angeles Mayor Antonio Villaraigosa and USC Marshall School of Business Dean James G. Ellis, Locke discussed the importance of exports to America’s economic recovery and job creation, and the resources that the government is providing to connect local small- and medium-sized businesses with foreign buyers, especially those from the Asia-Pacific markets, in order to help them sell more overseas and hire more at home.  

Announced on the one-year anniversary of President Obama’s National Export Initiative, New Markets, New Jobs is a year-long, interagency, multi-city outreach campaign designed to proactively bring government services to businesses across the country that are interested in exporting.  The tour was launched in Minneapolis in February, and will continue on to New Orleans, Louisiana in April and Wilmington, Delaware in May.

Filed under China, Education and Training by

September 5, 2010

Governor Schwarzenegger leading Trade Mission to South Korea

Governor Arnold Schwarzenegger will be leading a trade mission to South Korea, next week,  from Sept. 12-16. The purpose of this trip is to showcase California goods and services, promote tourism and the expansion of trade between California and South Korea. The trip is being organized by the Los Angeles Area Chamber of Commerce and will be will be organizing a number of business opportunities throughout the trade mission to allow California companies participating in the mission to connect with key business and government decision makers.

South Korea is California’s 5th largest trading partner, a press release by the Chamber notes. It is one of the fastest growing economies in the world today. Its economy relies heavily on exports to prosper. The following are some of the sectors that the Korean market demands more products from: automotive, broadcasting, communication and computer technologies, cosmetics, pharmaceuticals/nutritional supplements, and environmental technology, education and training services.

Filed under Business Associations, California Government, South Korea by

April 7, 2010

Will the Chinese again build our railroads?

That is the gist of an article in today’s New York Times – that nearly 150 years after American railroad companies imported thousands of Chinese laborers to build rail lines across the West, China may once again to play a role in American rail construction. This time, however, they will have a much different role: supplying the technology and engineers to build high-speed rail lines.

The Chinese government has signed cooperation agreements with the state of California and General Electric to help build such lines. The agreements, both of which are preliminary, show China’s desire to become a big exporter and licenser of bullet trains traveling 350 kilometers, or about 215 miles, an hour, an environmentally friendly technology in which China has raced past the United States in the past few years.

“We are the most advanced in many fields, and we are willing to share with the United States,” said Zheng Jian, the chief planner and director of high-speed rail at the Chinese Railroad Ministry.

Governor Arnold Schwarzenegger of California has closely followed progress in the discussions and hopes to return to China this year for talks with rail ministry officials, said David Crane, the governor’s special adviser for jobs and economic growth and a board member for the California High Speed Rail Authority. China is offering not just to build a railroad in California but to help finance its construction, and Chinese officials have already been shuttling from Beijing to Sacramento to make presentations, Mr. Crane said by telephone.

China is not the only country interested in selling high-speed rail equipment to the United States. Japan, Germany, South Korea, Spain, France and Italy have also approached the state of California.

The state’s high-speed rail authority has made no decisions on whose technology to choose. But Mr. Crane said that there were no apparent weaknesses in the Chinese offer and that Mr. Schwarzenegger particularly wanted to visit China this year for high-speed rail discussions.

Filed under China, Transportation by

February 9, 2010

Paypal suspends payment to India without explanation

PayPal, the online payment service provider that is a owned by eBay of San Jose, has shocked Indian nationals who rely on the service by suspending payment transactions to and from India for more than a week. Almost nothing was given in explanation for this abrupt action except a vague blog post on their website by Anuj Nayar, a PayPal spokesman:

Personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service

PayPal executives have been unavailable for comment on specific reasons why the service was discontinued. There is speculation that this may have something to do with new Indian government rules aimed at preventing money laundering. Last November, the Indian government introduced rules requiring financial institutions and other intermediaries to verify the identity of clients carrying out international money transfers.

Paypal has not just been blocking all their money transfer but has also not letting the Indian account holders withdraw money they already have in their accounts. For the past week, merchants have been unable to withdraw funds in Rupees to local Indian banks. shocking many Indians who have relyed on the service. The blocking started on January 28th and Paypal will only say that it is working to resolve the current situations in “the shortest span of time.”

Filed under Banking and Financial Services, India by

February 3, 2010

California Wine Shipment Drop for first time in 16 years

California shipments of wine have dropped in 2009 for the first time since 1993. As reported in the San Francisco Chronicle, sales figures show that consumption is up 2.1 percent nationally, but consumers are turning to cheaper imports from Chile, Argentina and Australia as global production exceeds demand.  ”

The numbers announced last week by Woodside wine research firm Gomberg, Fredrikson &amp Associates analyst Jon Fredrikson at the Unified Wine & Grape Symposium in Sacramento. “As we basically had a financial heart attack, people just reined in their spending and were very cautious,” Fredrikson said. “They moved dramatically down to lower price points, below $5 and $7. Small wineries in the North Coast that sell bottles from $25 to $100 were basically shut out. Inventories backed up, and that just made it an ugly year.”

The biggest drop in wine sales is for bottles that retail for more than $20. Sales were off between 20 and 30 percent in 2009, Steve Rannekleiv, an analyst for Rabobank told the Chronicle.  During the same time, sales for wines that cost less than $6 a bottle rose 5 percent.

As consumers have tightened their purse strings, bulk wine imports from countries with lower production and land costs have climbed. Between 2007 and 2009, imports more than doubled to 13 million cases to capture 32 percent of the U.S. market. “Argentina is the sleeping giant,” Rannekleiv said. Argentina has 510,000 acres planted in grapes, compared with 480,000 in California, which produces 90 percent of the wine made in the United States.

Filed under Argentina, Wine by

Sony Pictures to lay off 450

Sony Pictures Entertainment Inc., based in Culver City, will be laying off about 450 people and eliminating 100 open positions to cope with declining DVD sales. Most of the cuts at the studio will occur by the first week of March and will be in the home entertainment and information-technology units in the United States.

The company, a subsidiary of Japan’s Sony Corp. also cut back last March, when it laid off nearly 250 people and eliminated nearly 100 open positions. Company staff was informed of the latest cuts in a memo Monday and through videos by the studio co-chairs on an employee Web site. “Our industry is affected by two things: It’s affected by the economy, of course, and it’s affected by technology,” co-chair Amy Pascal says in the video. “Over the last two years, it’s changed people’s DVD buying habits, which has had a huge effect on our company and the industry at large.”

The home video market has been declining as people have not been buying videos as often, and instead turn to rentals, which are far less profitable for the industry.

Filed under California Economy, Entertainment Industry, Japan by

January 24, 2010

Avatar pulled from most theaters in China

The hit movie “Avatar” directed by James Cameron of Fullerton, and distributed by 20th Century Fox, of Los Angeles, is being pulled from most theaters in China, apparently because it is so successful.  As reported in the Los Angeles Times, The movie is no longer being allowed in 2D theaters even though is already the most successful movie of all time in China, having grossed a record $76 million.  The Chinese government only allows 20 foreign movies per year to be shown in China’s theaters. “Avatar,” which opened worldwide in mid-December, was held in Chinese theaters until January because the 2009 quota had already been filled.  The movie is already being widely pirated, with copies available in Beijing’s bootleg DVD stores. 

It seems incredibly strange that the Chinese government should be able to pull one of our most successful products just because it is successful, without any repercussions at all from our government.  Should the U.S. now stop the sale of some manufactured goods from China, as soon as they become successful?

Filed under China, Entertainment Industry, Opinion by

January 18, 2010

China’s Alibaba attacks Yahoo for Google Support

Talk about biting the hand that feeds you.  The Alibaba group – owners of the Chinese trade portal Alibaba has strongly criticized Yahoo – its largest shareholder, for siding with Google after a cyber attack on that company.  

As reported in the New York Times, a spokesman for Alibaba, said executives at the company were “angry” because Yahoo appeared to follow Google in suggesting the Chinese government was behind the cyberattacks.  They issued a statement saying that Yahoo was “reckless” in supporting Google because they believed there was a lack of evidence that the attacks were supported by the Chinese government. 

Yahoo is one of the companies that was targeted in the attacks but the company declined to confirm that it was a victim. “The people with knowledge of the situation said that Google contacted Yahoo about the attacks before it publicized them. Google executives were dismayed that other companies were unwilling to publicly acknowledge the attacks, and they were particularly frustrated by Yahoo’s silence” the Times reported. 

Yahoo paid Alibaba $1 billion in 2005 and gave Alibaba control of Yahoo China in exchange for a 40 percent stake in the Chinese company. Yahoo’s investment in Alibaba has paid off in a big way for that company. Alibaba.com, a unit of Alibaba, went public in 2007 with a huge stock offering in Hong Kong and is now valued at $12.5 billion.  Jack Ma, the founder of Alibaba is a celebrity in China because of his success in forcing California’s Ebay to leave the Chinese market, and for taking over Yahoo’s China operations, as part of their billion dollar investment in his company. 

This was a huge amount of capital from a California company that was used to make Alibaba fantastically successful. Now that company is turning on very the people who helped it become what it is.  Is this a simple case of “sucking up” to the Chinese authorities?  Jack Ma is said to be famous for that, and some people even believe he is now milking the resources out of Yahoo so it eventually fails in that country. 

In any event, a consensus seems to be forming that this is a free trade issue.  If the Chinese government blocks Google or other American Internet firms – or forces them to leave that country, the the American Goverment should take the same action with Chinese Internet firms – and it seems like a good place to start would be Alibaba.

Filed under China, Information Technology, Internet, Opinion by

January 16, 2010

China says Google censorship will not affect trade – but should it?

China has unilaterally declared that their depute with Google over censorship and strong evidence of government sponsored hacking will not affect U.S. Trade relations, but do they get to make that call?  

“Any decision made by Google will not affect Sino-U.S. trade and economic relations, as the two sides have many ways to communicate and negotiate with each other,” Chinese government spokesman Yao Jian told a news briefing in Beijing.

Well of course the two sides have many ways to communicate with each other – that is not the point. If one party to a trade agreement censors and blocks the content of the other party, then of course it should it should be a trade issue.  In the tit for tat world of diplomacy, if they block the content from one of our companies, then shouldn’t we block one of theirs?

California buys a huge amount of Chinese imports, but they don’t by nearly as many of our exports. One of our strongest industries in the movie industry – but only 20 foreign films are even allowed to be shown in that country each year. The rest of the movies we produce here are simply pirated (i.e. stolen) there, Can you imagine if we said to China, “we will only allow the products from 20 of your manufacturers in our country each year”. Now they are blocking, and possibly even attacking, one of California’s other great industries – Internet services.

It is not at all disrespectful to China to expect our government to respond to blocking and censorship with reciprocal actions that affect Chinese companies. That is how a mature trade relationship works. Mr. Yao Jian has it wrong. This is exactly the kind of thing that should affect trade and economic relations – this is a trade issue.

UPDATE: Evidence that the Obama Administration may be looking at these blocking and censorship issues from a more sensible “fair trade” perspective, might be found in a speech Secretary of State Clinton plans to give on the issue on Thursday. From a column by Andrew Ross in today’s San Francisco Chronicle:

“The Internet is integral to the international trading system,” said Ed Black, CEO of the Computer & Communications Industry Association, who is scheduled to meet with Clinton on the matter this week. “China cannot limit the free flow of information and still comply with its international trade obligations.” “You can’t lecture the Chinese on human rights,” said another industry executive. “You won’t get anywhere with that. So, it’s best to treat it as a trade issue.”

Should the administration go that route, it will enlarge the can of U.S.-China worms already growing around the latter’s increasingly protectionist economic policies. “Greater control of the Internet is part of a wholesale tightening up of the Chinese economy,” said an executive with a high-tech trade organization that is also due to meet with Clinton. “It’s about protecting domestic industries and pushing indigenous innovation. But they’re doing it in blatantly discriminatory, brazenly unfair ways.”

Filed under China, Hollywood, Internet, Opinion by

January 13, 2010

Yahoo sides with Google in China showdown

Yahoo, based in Sunnyvale has issued a statement supporting its cross town rival Google in their dispute with the government of China.  Google apparently believes the Chinese government or its spy agencies were responsible for an attack on its technical infrastructure, which targeted the accounts of human rights activists.  Yahoo issued the following statement:

“We condemn any attempts to infiltrate company networks to obtain user information.  We stand 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.”

The issue is sensitive for Yahoo because they provided information from their servers to the Chinese government that resulted in long prison terms for two Chinese journalists.  Yahoo is much more entrenched in China however.  They sold their Internet operations to Alibaba – a Chinese trade portal operator, but retained a 39 percent stake in that company.  According to the San Francisco Chronicle, Yahoo spokeswoman Nina Blackwell declined on  to say whether its solidarity with Google would cause the company to sell its Alibaba holdings.

Filed under China by

January 12, 2010

Is Google’s relationship with China turning sour?

Google Inc. will stop censoring its search results in China and may pull out of the country after experiencing an attack on the email accounts of human rights activists, according to a report in the San Francisco Chronicle:

Google disclosed in a blog post that it had detected a “highly sophisticated and targeted attack on our corporate infrastructure originating from China.” Further investigation revealed that “a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists,” Google said in the post written by Chief Legal Officer David Drummond.

Google did not specifically accuse the Chinese government. But the company added that it is “no longer willing to continue censoring our results” on its Chinese search engine, as the government requires. Google says the decision could force it to shut down its Chinese site and its offices in the country.

It’s unclear how much of a blow to its business Google would suffer by pulling out of China. The country has the world’s largest population of Internet users but research firm Analysys International said last year that Baidu.com handled 62 percent of Web searches in China compared with 29 percent for Google.

Update, according to the New York TimesGoogle linked its decision to sophisticated cyberattacks on its computer systems that it suspected originated in China :

Those attacks, which Google said took place last week, were directed at some 34 companies or entities, most of them in Silicon Valley, California, according to people with knowledge of Google’s investigation into the matter. The attackers may have succeeded in penetrating elaborate computer security systems and obtaining crucial corporate data and software source codes, though Google said it did not itself suffer losses of that kind.

While the scope of the hacking and the motivations and identities of the hackers remained uncertain, Google’s response amounted to an unambiguous repudiation of its own five-year courtship of the vast China market, which most major multinational companies consider crucial to their growth prospects. It is also likely to enrage the Chinese authorities, who deny that they censor the Internet and are accustomed to having major foreign companies adapt their practices to Chinese norms.

Filed under China, Information Technology, Internet by

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