Google Inc.’s (GOOGL) Gmail service has been banned in China by the nation’s avant-garde censorship mechanism often referred to as the Great Firewall of China.
Timeline of the China – Google Strife
Just before the 25th anniversary of Beijing’s suppression of the Tiananmen Square pro-democracy protests, Google came under censorship in China. During that time, Google’s collection of services comprising Gmail, Google+, Gchat and Drive were all banned from China. It was the first time that China had banned Google services to such a great extent.
However, many users had been successful in working around the restrictions by using apps like Apple Inc.’s (AAPL) Apple Mail or Microsoft Corp.’s (MSFT) Outlook to access their accounts via IMAP, POP, and STMP protocols.
With this latest ban, Chinese censors have closed this loophole, leaving virtual private networks (VPNs) as the last remaining route to access Gmail and other blocked services.
On Dec 26, Gmail’s traffic dropped about 85% in China and fell further the following day. It now remains almost nil.
Google spokesman Taj Meadows however clarified that there was nothing wrong at the company’s end.
However, China’s State Internet Information Office didn’t respond.
Chinese Foreign Ministry spokeswoman Hua Chunying said at a daily press briefing, that she wasn’t aware of the matter. She further claimed that the government encouraged foreign businesses to work in China.
Old Habits Die Hard
China has been indicted of creating an undesirable environment for U.S. businesses in general lately. According to a recent survey by the American Chamber of Commerce in China, 60% of the companies surveyed felt less welcome in China than before and 49% thought that overseas firms were being targeted.
This year, antitrust investigations by the Chinese government have imposed fines against both Microsoft and Qualcomm.
Chinese authorities are known to be very stringent about online content. They have previously blocked or unblocked Internet sites and services without citing proper reasons.
Top Chinese leaders are keen on expanding local Internet companies like social-media conglomerate Tencent Holdings Ltd. and e-commerce giant Alibaba Group Holding Ltd. (BABA).
Google is not the only one facing the harsh ways of the Chinese government.
Foreign services like Facebook Inc., Twitter Inc. and Google’s YouTube, are also blocked in China.
Why Gmail?
The Gmail ban serves as a reminder of the issues U.S Internet companies face in China.
Andrew McLaughlin, a partner at New York seed-stage investor Betaworks, calls this banishment “puzzling.”
McLaughlin is of the opinion that the government of China has usually focused on banning services like Facebook that might enable Internet users to organize mass opposition movements as opposed to an email service.
We hope that the New Year Resolution for China is to offer only the Great Wall of China and not the Great Firewall!
Google currently holds a Zacks Rank 4 (Sell).
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