Tuesday, March 30, 2010

$21 billion but scared: Hong Kong tycoon cuts ties with Google

Ace! NewsFlash

The Internet company owned by Hong Kong's richest man on Wednesday severed ties with Google's search services, sparking concerns that other companies may pull away from the Internet giant. Stressing its adherence to China's laws, Hong Kong-listed TOM Group issued a statement on behalf of subsidiary TOM Online following Google's decision to shut down its Chinese search engine on Monday.

Hong Kong's richest businessman Li Ka-shing gestures during a 2009 press conference in 2009. The Internet company owned by Li -- Hong Kong's richest man -- has severed ties with Google's search services, sparking concerns that other companies may pull away from the Internet giant.

TOM, which runs online and mobile Internet services in mainland China, said in a statement it had stopped users from visiting its website through Google's search engine service. "TOM reiterates that as a Chinese company, we adhere to rules and regulations in China where we operate our businesses."

TOM Group is one of the key elements of the business empire of property tycoon Li Ka-shing, 81, who has strong ties with the Chinese government. Li was ranked as the 14th wealthiest person in the world by Forbes magazine in March, when his net worth was 21 billion dollars, and he is one of only two Hong Kong-based tycoons to make the top 25 world ranking list.

TOM's announcement came as China's state media slammed Google's decision, saying the US Internet giant was "not god" and accusing it of working with US intelligence. "For Chinese people, Google is not god, and even if it puts on a show of politics and values, it is still not god," said the overseas edition of the official People's Daily, in comments echoed elsewhere in the mainland's media.

"Google is not chaste when it comes to values. Its cooperation and collusion with the US intelligence and security agencies is well-known," the ruling Communist Party's official mouthpiece said in a front-page commentary.

China Daily relished the "moment of peace" created by Google's decision, and slammed Google for offering China's 384 million web users access to "pornography and subversive content", saying the Chinese web would "continue to grow in a cleaner and more peaceful environment" without google.cn.

A Google spokeswoman in Singapore declined to discuss TOM's decision, but said the search giant planned to continue serving mainland Chinese users by re-routing its service through Hong Kong, a semi-autonomous Chinese territory. "We made this decision as a matter of principle, but we understand this is a complicated process with ramifications on the technology side and the business said," she said. It was too early to say whether any of Google's 600 staff in mainland China would be moved to Hong Kong, the spokeswoman said.

Hong Kong has pledged not to interfere with Google's plan.

Despite Google's promise of uncensored results, searches on the mainland of politically sensitive key words continue to generate the browser message "cannot display the webpage" -- suggesting China's "Great Firewall" of Internet control remained intact.

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