Not Google, but Alphabet Inc (GOOGL) could do business in China: Brin
Each unit decides for itself
Brin told the WSJ that each Alphabet unit will be allowed to decide for itself which countries it wishes to operate in. China has been a difficult country to do business, despite Alphabet doing a lot of business with them, Brin said.
A few weeks ago, Alphabet took a stake in Mobvoi, a Chinese AI startup that aims to develop smart wearable technologies. Earlier this year, the two companies announced the introduction in China of the Google Android Wear operating system.
In 2010, Google halted most of its operations in the country after a censorship dispute and an attack on Gmail users. Although the company sells ads in the region, its services are officially not available in China.
In August, Google revealed plans to reorganize under the new parent company, Alphabet Inc. The move allows the tech company to focus more on its core business as well as on offer flexibility to start-ups to its business units. Alphabet will oversee the Google unit and the operation of another unit created for projects in the fields of health, internet provision, investment and research.
China – too big to ignore for Alphabet
China is too big a market to ignore. Apple complies with local Chinese laws and helps the United States business to make billions Greater China, which includes the mainland, Hong Kong and Taiwan. China is Apple’s second largest market after the United States.
Many believe that by focusing only on Google Play, it would be easier for the company to enter China. Experts believe Chinese regulators will view Play as less dangerous than Search and Gmail, reducing the chances of a state investigation.
Domestic rivals have gained traction in China, raising questions as to whether Alphabet can use the Play Store to bring its other services into China. Complying with Chinese law would require Google to store all of its data in China and respond to requests for access to information and censorship. This is a very thorny question, especially if the US government gets involved.
Alphabet Inc. shares on Thursday closed 1.08% higher at $ 744.85. Since the start of the year, the stock is up more than 39% while in the last month it has increased by almost 20%