Why Google's China Gambit Makes Sense

In the midst of China's drive to become an economic power, Google's plight has quickly become a black mark on the business climate the Chinese government has been cultivating. While Google is an internet-based company, the internet has become critical to modern business operations. By threatening to pull operations from China, Google isn't threatening the government; they are calling into question that country's ability to maintain and safeguard EVERY company's business operations. They are leveraging their business clout against Chinese economic interest and changing the context in which foreign companies do business in China, potentially setting themselves up for a hefty competitive advantage in a growing market.

Google knows that even if the Chinese government is not directly involved in those network attacks, Chinese authorities will feel pressured to step in deal with those responsible. If the government fails to do this, they will appear weak and ineffective, two things this government in particular will bend over backwards to avoid. If China can't make Google happy, Google may very well become a symbol that will retard the economic growth China currently enjoys.

It is a mistake to paint this incident as a political issue. Far more important to the players directly involved in this story, this is a purely economic issue. As for whether or not the Chinese government is directly responsible for Google’s network attacks, the true answer is irrelevant in the face of what Google stands to achieve by publicizing this issue.