“This is going to be raised to another level, the U.S. government is going to get involved,” said UBS analyst Brian Pitz. “This is a bigger thing than just Google right now.”

Still, a day after the announcement, no other company had joined Google’s cause.

While abiding by local laws is a must anywhere, China’s record on human rights, and its growing status as a political and economic superpower, means companies often submit to practices they consider distasteful.

Google is uniquely positioned to go it alone, given its global stature and small business footprint in the country.

China is a tiny market for Google, at an estimated $200 million to $600 million in annual revenue versus $22 billion worldwide.

The Chinese market is difficult to navigate for many U.S. companies. But the market opportunity in the country is so vast that companies ignore it at their peril, analysts say.

Google said at least 20 major corporations in sectors such as finance, technology, media, and chemical were hit by cyberattacks that originated in China. The company suggested the strikes were more than mere isolated hacker attacks.

Google said the attacks, along with fresh moves by China to limit free speech, prompted its decision.

“I don’t think anybody is going to ride in the wake of Google, I don’t think anybody else can afford to,” said Northeast Securities analyst Ashok Kumar. “If you decide to play in China, you play by their rules.”

Source : Konaxis