Dell May be Following Google Out of China
Will Google's departure from China prove to be a harbinger of things to follow? Going by a report in a leading Indian newspaper, the answer is quite likely to be found in the vicinity of a “yes.” A report on Google's exit from China in the Hindustan Times carries a quote from the Indian Prime Minister Manmohan Singh on the prospect of another American tech giant shutting shop in China. The Indian premier is reported to have told the country's Planning Commission that Dell is about to shutter its China operations.
The Indian head of government is quoted as having told the Planning Commission,“This morning I met the chairman of Dell Corporation. He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system." Although it is difficult to discount anything that quotes a country's leader as its source, it is still wise to wait for a clearer picture to emerge.
But there is no denying the fact that the Chinese government has plenty to ponder in the aftermath of Google's exit. The Chinese economy may not be under any real threat of a collapse, for the dragon can only founder in the face of an exodus of foreign companies, but it will surely have its hand forced if a few more foreign businesses grow a conscience or leave in search of a more stable environment. It now knows that businesses are not entirely shy of moving out in search of “safer” alternatives, where they are immune from the whims of a government adamant on making everyone fall in line.

Image Credit: Inventorspot
Comments
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Black Lable 69
March 25, 2010 at 10:09pm
I'd say it's a good thing, China needs to understand that business is a two way street. Although I understand the feelings that the PRC have towards the Western world. After all, between 1839-1900 China was invaded by Western country's "Including the US & Japan" & parts were conquered & divided. This is what's known as The Opium War........so Beijing's perspective is to not only carefully monitor & control the flow of business but there is an instilled hatred/fear of what happened "Which I could understand". There's a city in the north called Qinqdao & it was once controlled by Germany. There's so much influence that you feel like you're in Europe, all the architecture is of German design. In fact I love Freedom & America with heart & soul but unknown to many "Even though it's common knowledge" is that it was the old Government of China which fled to Taiwan that was to blame for the foreign raping of China. However.....times have changed, like slavery in the US something of that scale could never occur again so China needs to become a little bit more flexible. The PRC cannot do it all by itself & neither can the US. Sure we can both find other partners but I think it's in the best interest of both nations that we find some measure of compliance for both parties, both in the business world & politically.
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whitneymr
March 25, 2010 at 12:48pm
What will really crank the Chinese is if they pull out and go to Taiwan.
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RtDK
March 25, 2010 at 10:21am
If Dell follows in the wake of Google, they'll have earned a good deal of my respect back. Part of me thinks they're just doing it for the publicity, but if there's a more honorable motive behind it, then I tip my hat to 'em.
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Tenhawk
March 24, 2010 at 7:03pm
I have to admit that while it was still Google I was deeply concerned, despite believing that Google was doing the right thing. As big as they are, they're still just one company, which limits the impact their withdrawal can have. If Dell follows, however, that makes two. And two is no longer an isolated incident, it's a potential trend about to start.
If that happens then Google will not only have made the right move, ethically, but they'll have actually had an impact on the world in a real way, a way that a lone stance just can't match. History will tell whether it's a positive impact or not, one can never be sure what way the hurricane generated by the butterfly's wings is going to blow after all, but it'll be an impact that at least began with a moral stand in favor of free speech and freedom of information.
That's a stand I can agree with, come what will.
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naxself
March 24, 2010 at 6:59pm
I hope Dell actually does leave China. And I hope more tech companies follow.
Of course, most won't because they have neither spines nor balls.
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