Google's ability to operate any kind of Internet business in the world's largest market hangs in the balance as China weighs whether it will renew Google's Internet license, which officially expired June 30.
China has expressed dismay at Google's rerouting of search traffic
to an uncensored site in Hong Kong, but has not yet disclosed whether it
will try to shut down Google in China. "Given that they've not said
anything so far, it probably indicates that decisions at fairly high
levels are involved and that [the Chinese government] understands that
whatever decision gets made is going to get a lot of attention globally
and will send a signal that goes well beyond China's relationship with
Google," says Rebecca
MacKinnon, a China Internet expert and a visiting fellow at
Princeton University's Center for Information Technology Policy.
"Their inclination will be to punish Google so that everybody stays
in line," MacKinnon adds. "But on the other hand, not renewing the
license would send a broader signal about just how open the market is,
or isn't, in China. You've got President Hu Jintao getting ready to
travel to the U.S. for a summit. A refusal of Google's ICP [Internet
Content Provider] license would certainly add to the pile of negatives
in the relationship, so I imagine they are weighing that."