But for Google’s corporate parent, Alphabet, the opportunities in the world’s largest internet market may be too good to resist. And the full scope of the company’s interest in China now appears to be broader than just internet search.
The latest hint came from Waymo, the driverless-car company that was spun out of Google in 2016. Chinese media noticed this week that the business had registered a Shanghai subsidiary in May, suggesting that it wants a piece of an industry that the Chinese government has made a priority.
Other recent steps that Google has taken in China include opening a research centre and promoting its software tools to developers.
In artificial intelligence and other areas in which Alphabet is seeking to advance the technological frontier, China today is more than just the planet’s biggest audience of internet users. It is an ecosystem of sophisticated potential business partners and tech-hungry customers from which tomorrow’s innovations could emerge.
Other American tech giants have made their peace in various ways with Beijing’s strictures and conditions for operating in the country. Unlike Google, Apple runs its own app store in China, heeding government directives about the kinds of apps that can be available to Chinese users. Microsoft and Amazon offer cloud computing services, working with local partners and following strict controls on how customers’ data is stored.
Alphabet’s investments in future technologies make it particularly important for the company to get a foot into China early. Driverless cars have prompted regulatory and political debate, which means starting sooner could help reduce Chinese authorities’ concerns. More time in China for Waymo also means more experience on Chinese roads for its cars, and more data collected on the country’s driving environment.
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