Verdict: Irrelevant
Google (NASDAQ: GOOG) has begun to enlist the US government’s assistance in its fight against China’s censorship of online search results. The effort is a waste of time because the US government cannot effect its own policy goals with China.
“These actions unnecessarily restrict trade, and left unchecked, they will almost certainly get worse,” Google wrote according to Reuters
The fact of the matter is that the US has virtually no power in its dealings with China on a range of economic and trade practices. US companies have pressed for more access to markets in the People’s Republic, with encouragement from Washington. GE (NYSE: GE) in particular has attacked the Chinese about market access.
The US also has been largely unsuccessful in its attempts to get China to allow its currency to be more “fairly” valued. China has also restricted measures to make the trade balance between the world’s two largest nations more equal.
Other nations have also resisted US and American corporate attempts to open Internet and electronic communications markets. Research In Motion (NASDAQ: RIMM) has found itself in danger of being kicked out of India and Saudi Arabia over the issue of Blackberry communication privacy restrictions.
If Google wants help from the US government, it will have to wait a very long time
Douglas A. McIntyre
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