Alphabet Inc president Sergey Brin said that parent firm may do business with China following the reorganization. Brin told the WSJ that each unit is allowed autonomy in the new organisational structure.
Each unit to decide for itself
Brin told the WSJ that each unit under Alphabet will be allowed to decide for itself the countries it wants to operate. China has been a difficult country to do business, despite that Alphabet does a lot of business with them, Brin said.
A few weeks back, Alphabet bought a stake in Mobvoi, a Chinese AI startup that aims to develop wearable smart technologies. Earlier this year, both the firms announced to bring to China, the Google Android Wear OS.
In 2010, Google discontinued most of its operations in the country after a dispute over censorship and an attack at the Gmail users. Though the firm sells ads in the region, officially its services are not available in China.
In August, Google revealed plans to reshape under the new parent firm, Alphabet Inc . The move allows the tech firm to pay more focus to its core business along with offering start-ups flexibility to its business units. Alphabet will oversee the Google unit and the working of other unit created for projects in health, Internet delivery, investment and research.
China – too big to ignore for Alphabet
China is a too big a market to be ignored. Apple complies with the local Chinese laws, and it helps the US firm to earn billions from Greater China, which includes mainland, Hong Kong and Taiwan. China is Apple’s 2nd biggest market after the US.
Many believe that a focus only on Google Play could make it easier for the firm to enter China. Experts believe that Chinese regulators will see Play as less harmful than Search and Gmail, thus lowering the chances of a state probe.
Domestic rivals have grown big in China, raising questions if Alphabet can use the Play Store to get its other services into China. Complying with Chinese law would require Google to store all its data in China and meet information access and censorship requests. This is a very thorny issue, more so if the U.S. govt gets involved.
On Thursday, Alphabet Inc. shares closed up 1.08% at $744.85. Year to date, the stock is up over 39% while in the last one-month, it is up almost 20%