This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google Won't Ditch China Plans: Firing Line

NEW YORK ( TheStreet) -- Google (GOOG) announced Tuesday it was considering pulling out of China because of sophisticated cyber attacks against the Gmail accounts of Chinese human rights activists.

The shocking aspect of this story isn't that it happened. The Chinese have been actively hacking into Pentagon and defense networks for some time and recently have been prying into the F-35 Joint Strike Fighter program. Add in a couple of spy scandals and one would think the Chinese just don't like us.

Now, of course, we're no babe in the woods. Our intelligence agencies are doing the exact same thing. And if they're not, they're fired. Again.

The interesting aspect is Google's response. Is the "Death Star" turning a new leaf? Is Google pausing in its quest for world domination? Depends on if you believe the search company or not.

The current China operation isn't that large and according to Google pulling out won't significantly impact its bottom line, meaning it can find that amount in its couch. So Google may be doing this because it's the right thing to do. Maybe Google saw the tarring Yahoo! (YHOO - Get Report) received for previously caving to the thugs in Beijing and their penchant to censor free speech.

If you don't believe Google, perhaps this could be one way to close a business arm that isn't working while looking like a hero -- the business Jedi Mind Trick.

The one thing we do know is that Baidu (BIDU - Get Report) stands to profit from a Google retreat, at least temporarily. If anyone thinks Google is going to ditch its long-term plans to own China (along with the rest of the world), I have some Lucent stock to sell you.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BIDU $218.17 2.80%
GOOG $565.06 0.00%
YHOO $44.52 0.00%
AAPL $132.36 2.10%
FB $81.55 -1.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs