An Open Letter to Google Founders— to save Google in China and save Internet in China

Filed under: meta by im | 25 Comments » |二月 9, 2007 at 1:04 下午
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Dear Larry and Sergey,

I’m writing you the short letter on behalf of many Internet users in China to have some suggestions to resolve the current dilemma for Google in China,  from both business and social perspectives.

During the National Day holiday week in 2002, when Google.com was blocked in China for the first time, Chinese Google users made an online protest spontaneously. They appealed to free the purer search engine wave by wave. Its seemed its also the first time grassroots power was demonstrated in China on Internet.  You can imagine how eager they are to have a complete Internet instead of a shrunken one. At last, people won, Google backed.  However, after 4 years, we started to question whether we should continue to support Google. Many users here were disappointed when they found Google.cn filtered many keywords. The compromise remarks by you in Davos made us more frustrated. Seems you are adopting self-censorship which hurts those loyal users a lot which also devalue your motto of “non-evil”.

Google is ever regarded not only a leading Internet business, but a hope for many people around the world to open their thinking.  Many bloggers in China still believes that in their everyday writings.  We guess you were misled by incomplete information on how censorship is good to Chinese people. The fact is Google in the 130M-Internet-Users country is losing loyal users with loosing your principles. We understand its tough to anyone to make decisions. But it high time to change it back to the right track.  Here we would like to propose 3 ideas to Google for its China strategy in a long term run, to survive, and live better:

1. Set up a 1B US$ corporate venture fund to invest in China’s Internet pioneer sites and cutting edge companies.  The venture fund can be managed by experienced fund managers and industry gurus who really understand the value of Google, as well market potential of China. In my estimation, a venture fund with such a size can invest over 100 deals totally cover 60% of Internet traffic in China.  With venture fund strategy, Google can play its manageable chaotic game in a capital way.

2. Develop anti-censorship tools and service for global Internet users. In China as well some other coutries, censorship is still  a tradition in culture. We are accustomed to control or to be controlled(It’s true!). But it’s too far from modern humanity and universal value. It won’t target China only, instead its a global issue to be solved. So it won’t cause Google’s operation in China into trouble.  The budget to complete the mission will be not more than several millions dollars.

3. Increase the incentive to Chinese Google Adsense users. This can dramatically encourage more Internet users to participate Google’s business ecosystem.  It’s a pure business strategy to increase loyalty as same important to Google’s products in China. Anyway the tactic should be deployed with better localized customer service to respect to individual users and protect their less to hundred-dollar income.

Google is not alone. There are still several millions Google fans in China, especially those bloggers who are more real time intelligent to outside world.  If Google do good as they did in early days. There will be more supporters for sure. Google is not playing a game of itself. You may  under-estimate that before with limited information sources. People here are looking forward  that you can pick the three suggestions(or partly) as China strategy in the coming years which can keep Google’s “non-evil” motto alive in people’s mind. It will also benefit to Google’s business in China. It will be also benefit to the whole Internet neutrality in China. All the Internet users will appreciate that eventually.

All of all, the pure the better; the more compromise, the worse.

Best Regards

Isaac Mao

2007/2

  • Randy

    ????????????????????

  • helpr.cn

    顶！

  • Anonymous

    corporate venture fund in china… isn’t there already too much fund chasing too few entrepreneurs now?

    “We are accustomed to control or to be controlled(It’s true!).” WTF?!

  • Anonymous

    Keep up the brave work Mr Mao.

    regards,
    jonathan riley

  • Anonymous

    This is a good article on why Google has stalled in China so far on Seeking Alpha by Shaun Rein of China Market Research Group (CMR).

    Has Google Failed in China?
    http://china.seekingalpha.com/article/26033

    Many people have criticized Google’s (GOOG) management for losing market share in China to local firm Baidu (BIDU) after initially taking a commanding share in the browser market. In surveys my firm conducted with Chinese youth in Shanghai between the ages of 18 and 24, over 80% said that they used Baidu as their primary search engine with Google a far second at just under 20%. Google’s poor faring over the last year has caused a lot of analysts to lump them with eBay (EBAY) and other internet failures in China, with many arguing that foreign internet companies can never do well here.

    Could Google collapse in China much as eBay did, even after huge initial leads over local Chinese players? Will Google’s stock price be affected like eBay’s because it has been unable to capitalize on China’s booming internet culture, in which nearly 140 million Chinese connect to the net? What will happen with Rupert Murdoch’s Myspace (NWS) foray into China?

    Most American critics have argued that Google has stalled in China because they censored their Chinese language searches. In Davos, Google Co-Founder Sergey Brin stated “On a business level, that decision to censor… was a net negative.”

    However, in our surveys and interviews, censorship was not one of the top 10 reasons that respondents said contributed to a preference for Baidu over Google. In fact, most Chinese did not even realize that there was a censorship difference between Google’s English and Chinese versions. It seems that Google’s censorship decision has been more of a hot topic for foreign critics than by Chinese end users themselves.

    I am going to buck the trend of most analysts and argue that Google has a huge opportunity in China to retake market share from Baidu if it can get the right management team in place, delegate authority to them, and localize services. I have also argued previously that Baidu is spending too much time distracted with the international markets than shoring up its domestic positions. If Google does not delegate enough to a local management team and develop China-specific services, and if Baidu continues to focus on the wrong revenue generating opportunities, then Google will fail as eBay did in China.

    Google’s Micromanagement and Oddball Hiring Practices

    Google’s problems in China result more from their bizarre hiring practices for a large MNC than in their censorship. In interviews we recently conducted with senior Google managers in China, we found that they believe that Google’s slow hiring practices (where Google co-Founder Page personally has to write off on every job offer) hindered Google China in bringing enough talent on board early on. Without the team on the ground, Google floundered while Baidu was able to keep up with fast-changing shifts in the marketplace. But the team is starting to get settled – and it is a very bright and talented group based on what I have found in discussions.

    My first suggestion for Google – it is absurd a company Google’s size to have every job offer be personally approved by such senior management in the US. Google’s senior management needs to learn how to delegate authority more. As Google expands in China, it will have to continue to bring the right talent on board. It will not be able to do so unless they change their hiring practices that are way too slow. I know very talented people who either decided not to try to join Google after initial interviews or refused to even go into the interview process because of what they felt was a drawn out and absurd process.

    Being able to recruit and retain top talent anywhere but especially in China is one of the most important, if not the most important, items an MNC needs to focus on in China.

    Access Speeds

    One of the reason’s respondents to our surveys said they switched from Google to Baidu was because there was a time around Baidu’s IPO when Google suddenly became slow or difficult to connect to, while Baidu never had those problems. This happened to me too and was quite frustrating.

    But in the aftermath of the Taiwan earthquake, where Google ran the whole time, we have seen that Google is now one of the more stable American portals. For my personal email, I have stopped using Yahoo (YHOO) and Hotmail (MSFT) and switched to Gmail, not because it is a more powerful system (which it is) but simply because the access speeds are much faster. Half the time I still cannot get onto Hotmail and Yahoo goes in and out.

    I am not sure how these portals structure their servers and the such, but it seems that Google has figured out the hardware structure necessary to be able to compete from a speed level with Chinese portals like a Sina (SINA) or Sohu (SOHU).

    Stickiness Factors

    The main thing we learned through our surveys is that the service and product offerings are paramount to Chinese internet users.

    20% of survey respondents said that they used Baidu because of the MP3 search function and other stickiness factors – such as virtual currency – that keep people coming to the portal. While Google has some awesome services for the English speaking market, their Chinese services pale in comparison to Baidu’s. This is something that Google needs to remedy and which Yahoo did by teaming up with Alibaba where the management team under Jack Ma is close to the consumers.

    Foreign internet companies need to understand that China’s nearly 140 million internet users who actively engage in e-commerce are in itself a total market. Internet companies need to develop services, products and processes that target Chinese netizens directly rather than just bring what worked in the US to China. The market is too big here to consider China an auxiliary market as smaller countries are. New systems need to be put in place to compete with the top Chinese internet firms. Although they have no ADRs, for instance, I believe QQ is hands down one of the best run Chinese firms.

    Conclusion

    Many critics have said that Google has failed in China. I agree with this but not for the reasons that most critics highlight – censorship. While that is a sexy topic amongst many Americans, Google has failed for much more prosaic reasons. They should learn from eBay’s failure or Yahoo’s experience where too little management control was ceded to the team on the ground.

    If Google can change some of its outdated practices, it will do very well in China and expect its stock to continue to rise. If it does not and if Baidu can focus better, then Baidu just might give Google a run for its money.

    http://www.researchcmr.com

  • Emre Sokullu

    Man, you lost it from the beginning!

    “Dear Larry and Sergey,”

    Eric, Marissa and Omid will get jealous of this and oppose to your ideas, believe me…

  • Anonymous

    Great post Mr Mao!

    I’ve submitted your post to chinamemes.com. I hope many people will read your ideas.

    Regards,
    Tony

  • Anonymous

    trying to reduce the whole matter to a business-marketing-$$$ issue (as brin said in davos and the above story by researchcmr.com) suggest is a wrong and unaccetable approach

    here we are dealing with access to information and culture, censorship and “do no evil”, it’s a much broader issue for any concerned citizen about democracy and free speech

    trying to frame it as a “pure business” affair is another injustice against some people and a misstep toward a more open and horizontal society due to new technologies

  • berny

    great ideas, isaac, especially the second one!

    just spread them on my blog (in italian)

  • AJ Warner

    America is so far from China, and I am not just talking about physical distance. Flying over to China for a two week “investigative” trip to China while staying at the Hyatt Hotel will not reveal what is really going on in China. Censorship is accepted in China – 99% of internet users don’t care.

    The main problem facing Google in China is that it has taken a great American idea, but not localized it enough to fit the unique tastes of Chinese internet users. However, I had an opportunity to visit Google China with the American Chamber of Commerce and listen to Dr. Kai-Fu Lee talk about Google’s plans for 2007. Although he did not get into specifics, he did reveal that Google plans new, localized services across 8 main areas including MP3s (Baidu’s bread and butter search area).

    With Google China consolidating its 3 offices in Beijing into a single office and entering the second year of Dr. Kai-Fu Lee’s leadership, I strongly believe that many positive results will be seen this year. Also, Google recognized correctly the importance of China and is not scared by short-term challenges because it has a long-term goal. Dr. Lee mentioned that they don’t care if it takes 5,000 years for Google to dominate the Chinese internet…. They plan to make the necessary investments.

    One of the things you learn from living in China, even in just a year and half like me, is that things in China change all the time. From good to bad and in Google’s case, bad to good…

    I really appreciate Isaac Mao’s comment to try to put pressure on Google China, but I believe they have already heard this message and are building the necessary Chinese internet tools that user in China want. Hopefully, Isaac Mao’s comment gives Google another positive push in the right direction. I look forward to hearing people talking about how Google is the first company to succeed in China’s hyper competitive internet market.

  • Anonymous

    Trash talk. Baidu does the same thing and they can do better. You have to look deep into the issues.

  • Anonymous

    America is so far from China, and I am not just talking about physical distance. Flying over to China for a two week “investigative” trip to China while staying at the Hyatt Hotel will not reveal what is really going on in China. Censorship is accepted in China – 99% of internet users don’t care.

    The main problem facing Google in China is that it has taken a great American idea, but not localized it enough to fit the unique tastes of Chinese internet users. However, I had an opportunity to visit Google China with the American Chamber of Commerce and listen to Dr. Kai-Fu Lee talk about Google’s plans for 2007. Although he did not get into specifics, he did reveal that Google plans new, localized services across 8 main areas including MP3s (Baidu’s bread and butter search area).

    With Google China consolidating its 3 offices in Beijing into a single office and entering the second year of Dr. Kai-Fu Lee’s leadership, I strongly believe that many positive results will be seen this year. Also, Google recognized correctly the importance of China and is not scared by short-term challenges because it has a long-term goal. Dr. Lee mentioned that they don’t care if it takes 5,000 years for Google to dominate the Chinese internet…. They plan to make the necessary investments.

    One of the things you learn from living in China, even in just a year and half like me, is that things in China change all the time. From good to bad and in Google’s case, bad to good…

    I really appreciate Isaac Mao’s comment to try to put pressure on Google China, but I believe they have already heard this message and are building the necessary Chinese internet tools that user in China want. Hopefully, Isaac Mao’s comment gives Google another positive push in the right direction. I look forward to hearing people talking about how Google is the first company to succeed in China’s hyper competitive internet market.

    All the Best,
    AJ Warner, Beijing

  • Leon Goo

    Be patient for 5,000 years and get into the MP3 thing? Now Dr. Lee is contradicting himself. If you guys are really that patient, you could revolutionize the music industry first :)

  • sean

    Why put faith in Google making any considerable changes in China? It is a poor company when there is compared to Baidu and others. Why can not Chinese companies make these changes themselves and why do we need to rely on an American company to change Chinese people’s lives? You should read Google Is Destined To Fail In China for more info at http://www.chinatechnews.com/2006/01/26/3263-google-is-destined-to-fail-in-china/ and then let me know if you believe Chinese must rely on western co.

  • Stefanie

    Nice post. I think a lot of people vehemently oppose Google’s moves in China (including me and many of my friend’s in Canada). It made me think very differently of them as a company. I have no idea why they are still a media darling after they participated in China’s censorship. Best of luck with your plan.

  • Irene

    Dear Isaac,
    Unfortunately, China is not the only country where people are accustomed to be under control, thought they would never confess it!
    However, I laked the idea of developing anti-censorship tools.

  • mao

    Isaac,

    Your idea is smart, however unfortunately I don’t believe it gonna work since we have a very tough goverment, it may only lead to worse situation. Since they can implement GFW, they can make a Great Jail for those who dare to break GFW!

    From a user’s aspect, I don’t think a censored version has too much different with the uncersored version. What I hate most is it always get reseted of the connection.

    Robert

  • Tarmo Toikkanen

    While I applaud your anti-censorship stance, I wonder who needs to be saved from whom. There are more potential internet users in China than in all of the western nations combined. When in 10 (replace with suitable number of your choice) years time over 50% of the Internet’s content, traffic, and users speak Chinese, and Baidu is THE search engine of choice, what will the minority English-speaking net then do? Just a thought.

    In general, I think that waiting for a generation change in the government will make cencorship and freedom issues go away. The Chinese youth is getting educated and they do have a clue. But it might be that after a few years the Great Firewall of China won’t be that important to anyone, since the Chinese net majority no longer cares what happens in the small .com-section of the net. I mean, I don’t follow the .xn--55qx5d domain activity that much…

  • Edwin Mijnsbergen

    Good to hear from a Chinese blogger.
    Keep up the good work!

  • us gooler

    Anti-censorship won’t save Big G. It’s deeper than that. it has more to do with researching Chinese users’ needs.

  • Japhy

    This is like a ball that they’ve started. He needs American help to make Google listen though.

    this doublepaw.org member thinks it is a good idea!

  • Anonymous

    Only foreigners and odd-ball Chinese bloggers care about censorship issues. Contrary to popular opinion in countries like the USA, Chinese people do NOT go around searching for Tiananmen-1989 every day. They’d much rather search for mp3s and cell phones. And where do you come up with the idea of Google making anti-censorship ideas from? Google would presumably say “Don’t worry, we’ll make it available to Saudi Arabia too” and expect China to just happily let Google keep operating in China? Are you really Chinese? And even if censorship is the issue, how the heck is making a venture capital fund going to solve anything? Trash talk!

    And I do have to agree with the third post: “We are accustomed to control or to be controlled(It’s true!).” I think I can see past the grammar mistakes, but what the heck do you mean by that?

  • THE ANiTOKiD

    China represents the future of the online industry and retreating from it is losing the future. Market leaders need to play their cards right in they want to stay in the game and ahead of the competition. China’s so-called liberation has the industry and its players on their heels. The government’s drive to “purify” the Internet of “scandalous” materials not only threatens to suppress the realization of greater freedom inside the country, but hurt the reputation and interests of companies, such as Google, and negatively affect the business ecosystem.

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