Final Word from Monday, January 18, 2010
Google's likely withdraw from China is being presented as a moralistic stance against censorship, but over time it might come to be seen as the first major nationalization by China of foreign assets. It's not a literal nationalization, of course, because Google will get to keep its desks and chairs, but its 35% market share will be put up for grabs. Market-leader Baidu, which has good relations with the government, will benefit the most. The "nationalization" of Google began already in 2006, when China convinced it to censor its searches. Many other Western investors wanting to enter China, including some Czech firms, have made similar concessions. Short-termism has prevailed. Warning signs that China will find ways to take over imported technology have been ignored. Other forms of nationalization might not be far away. How else can China collect all the money it is owed by the West?[Czech Republic Beijing]
Glossary of difficult words
up for grabs - available; obtainable;
concession - compromise; the act of conceding, granting or yielding something;
short-termism - excessive focus by corporate leaders, investors and analysts on short-term earnings, combined with a lack of attention to the strategic, fundamental and conventional approaches to long-term value creation.