- The Chinese internet market has grown rapidly from half a million users in 1997 to over 400 million users currently, making it the largest internet market in the world. - Google entered the Chinese market in 2005 but pulled out in 2010 due to cyberattacks and censorship issues. - The document analyzes options for Google going forward, including filing a complaint with the WTO arguing that China's censorship violates its trade commitments.

1. InChina Globalization & U.S. International Economic Policy LaurenKlein | Cristina Gomes

4. Itwill continue to becomethebiggest internet marketintheWorld.

6. Google came to China in 2005, afteritdeveloped a Chineselanguageinterface. In 2006 Google boughtthedomainGoogle.cnandwasgrantedan ICPlicensethatlegitimizeditspresence. From a PR perspective Google washitinthe western media. In 2002, Baiduhadonly 2% ofthemarket share andnowhas 60%,Whathappened? Baiduhas more expertiserelated to cultural interestinentertainmentandissupportedbythegovernment. Thetotal sizeofthesearchmarketin China is $1 billiondollars. Itisexpected to grow 40% in 2010. Google’s history in China

7. InJanuary 2010, Google announcedthattheywouldpullitsbusinessoutof China. Reasonsinclude: - Cyberattacksonits servertargetedatgmailaccountsofhumanrightsactivistsand a Businessdecision. TheChineseoperation for Google issmall, roughly 1% ofthe total globalrevenuesof $23.6 billion. TheyreroutedGoogle.cnto Google.com.hkwhichcouldpotentiallybeblockedinthe mainlandinthenearfuture. Google’s history in China

8. Google’s history in China

10. Work with a multi-stake technology association.

11. Increase collaboration with Human Rights groups.

13. MostfavoriteNationprinciple, whichmeansthatallcountriesinsidetheWTO haveequalrightsinrelation to eachothersmarkets. Whatwouldbethebasis for a WTO complaint? WTO precedent – online gamblingcontestedbyAntigua&Barbudaagainstthe U.S A resolutionwaspublishedbythe UN onJune 30, 2000, thatdefinedweb-searchportals to beunder “data processingservices.” China has no restrictions for “data processingservices” undermode 1 and3 whentheysignedin 2001. Go through a WTO compliance procedure

16. CensorshiprulesthunderGATS and GATT are relatedto theprotection of publicmorals, butthisisnothow China censors. Filtering would be less trade restrictive!!

17. Gothrougha WTO compliance procedure Main argument for a WTO complaint: Filing a complaint in the WTO will not be used to eliminate censorship in China. It will be used to make censorship more commercially friendly in the Internet environment, using active filtering instead of entirely blocking sites. If Google and the U.S. administration don’t use WTO to address the underdeveloped and uncommitted countries to its rules, where else would they go?

18. Global NetworkInitiative (GNI), basedin Cambridge andfoundedin 2008. - GNI works with several Internet and media companies, such as Google, Microsoft, Yahoo!, academics and human rights organizations to create best standards in Internet and filtering policy across borders. TheseassociationsgivemembersgoodPublicRelationsat a minimal cost. Google couldhelpgroupslikethisgrowinorder to ensurethefreeflowofinformationandfreetrade Work with multi-stake holder technology association

19. Google shouldalsoconsiderworkingwithHumanRightsgroups Examples: FreePress, Center for DemocracyandTechnologyandHumanRightsWatch. Inorder for the U.S. to file a complaintinthe WTO, itwillbenecessarytoIncreasepoliticalsupport Collaborationwithhumanrightsgroups

20. Google shouldconsiderinvestingintechnologythatallowsitsusers to bypassthe Firewall. The Global Internet FreedomConsortium,isoperatedbyvolunteersthatbuilt a software thatisable to constantlyswitchtheusers IP andworksfrom servers aroundtheworld. Aproximately1 millionusers use thisin China. As Google moves outoftheChinesemarket, mightbeoftheirinterest to supportsuchorganizations. Support technological efforts to bypassfirewalls

22. isnecessary to effectivelyInfluencetheChinese Internet market.

23. China is committed to “data processing services”under GATS.

24. Thisisnot a newissue for the WTO.

25. The questionis, does the U.S.want to fightfor thismarket–