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The Chinese government renewed Google’s (GOOG) license to operate on the mainland today, more than a week after a decision was originally due. The delay shows there is internal conflict over whether Google should remain while refusing to censor its search results. In the end, the Chinese decided they value Google’s innovation more than they worry about its free speech principles.

A hacking incident back in January kicked off the fracas between the two parties, and for a moment it seemed that Google and China would truly go their separate ways. But as my colleague Erik Sherman points out, China is simply too big a market for Google to abandon, with more internet and mobile phone users than any other nation and growth in those areas that is truly astonishing.

Google’s value to China is subtler. As Glenn Derene writes over at Popular Mechanics, “China has done a great job at developing its manufacturing base, but still lags when it comes to technological innovation.” The research and development facilities that Google built in China are a draw for the nations top talent, who then filter back out and begin their own companies.


To read the full, original article click on this link: China, It Turns Out, Values Google's Innovation More Than It Fears Its Principles | BNET Technology Blog | BNET

Author: Ben Popper