Google cancels phone launches in China

Google cancels launch of new phones in China as Beijing relationship intensifies

With launch events scheduled for this Wednesday in Beijing to launch two new Android powered Google handsets, Google has confirmed today that the company would “postpone” the launch, giving no explanation.

Google spokeswoman Marsha Wang made the announcement today and did not elaborate further, other than to say that the launch had been postponed.

The news comes as Google threatened to stop censoring Chinese search results and to entirely cease operations in China after sophisticated cyber attacks on Google’s infrastructure aimed at compromising trade secrets and compromising confidential information, including email messages from Chinese activists, allegedly originated from Beijing.

Beijing says that, “Foreign enterprises in China need to adhere to China’s laws and regulations,” and that Google would not be an exception.

Google currently has a marginal market share in China when it comes to online search, a mere 30-percent, while the remaining share is controlled by Chinese search engine Baidu. The Chinese Internet population is currently a staggering 700 million people (the biggest online market in the world), and could represent a material revenue source for Google.

Washington has filed a formal complaint with the Chinese government. Beijing is completely denying any involvement.


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Murad is an engineering graduate from Centennial college in Toronto, Canada. Write to murad@business2press.com
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