Google in China is Still Gaining Profit,but is also Losing Positions

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As we had already reported, censorship in China has become enormous.  The government has restricted the access to outside websites, and Google is one of them. Google has officially said that its business with Chinese advertisers is growing, even though its share of online searches in the country falls down.

"Google's revenue in China has grown year-on-year," said a company spokeswoman. "Our business in China is doing well. We have hundreds of partners – large and small – who we continue to work with." Google says it sees its biggest opportunities in China in selling advertising on behalf of local websites or to companies that want to reach customers abroad through its global sites.

But still Google’s position in China is not so encouraging. A major Chinese portal announced last week it would no longer use Google for searching. The future of Google map service is also in doubt. Google's main presence in China has been reduced to its advertising sales offices only, an unusual situation for a company that dominates the internet elsewhere. That’s why a lot of people try to set up VPN connections to unblock webs.

The talks with Chinese government didn’t give any results, so Gmail still remains inaccessible for China. Moreover, Google risked being completely shut out of China after it angered Beijing by announcing last January it no longer wanted to comply with web censorship. "Without a flagship Google will fall further behind Baidu as a search provider. Chinese companies will think twice before they can have any kind of relationship with Google," said Edward Yu, president of research firm Analysys International.

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