Finally, after having a lot of pressure, and have failed in negotiation. Google decided to closed they google.cn server in china, the main reason because of china government still didn’t accept Google run its search engine without censorship. But the problem of censorship didn’t make Google losing  wits to keep their search engine still stand in this country.

Not really over yet
Google calls on the service changes that divert China from the search service to Google.com.hk Google.cn is just doing a new approach in order to stay legally operate without censorship. It is said David Drummond, Senior Vice President of Corporate Development and Chief Legal Officer of Google, in his blog at 22/3/2010.

“In terms of Google’s business operations in general, we would still maintain a research and development facilities in China and sales offices are also there although the number of sales teams may very depending on the access capacity from mainland China to Google.com.hk,” Drummond said.

Although eventually resigned from China, Google is not completely shut down the Internet users in that  bamboo curtain country. Google.cn site starting Monday  at 22/3/2010, if visited will be transferred to Google.com.hk address.

In the same article, Drummond announced, starting Monday had to stop censorship of the services Google Search, Google News, and Google Images on Google.cn, but it turned the server to Hong Kong. In fact, the service displays search results in a simple character that many of China’s population used in China.

“Welcome to the Google search service is new in China,” the sentence in China on display in these pages, as reported by AP. The site also displays search results in China simple characters widely used in China.

This displacement is made legal efforts to avoid Google’s censorship rules that required the Government of China. Although part of China, Hong Kong, which is a former British colony, were given their own autonomous authority.

Search results on Google’s Hong Kong site is not censored. Earlier, on January 12, 2010, Google decided to stop censorship in China and hope to continue to operate without censors. However, negotiations for more than two months did not find the meeting point and the Government of China still requires that the sensor.

Google New Expansion Plan
Having decided to out from China, Google immediately prepare a new plan.  This search sites company will expand its business to South Korea and Japan. In these two countries, the popularity of Google will rapidly increasing. China Business News reported, the official announcement from Google will come out in the near future.

The existence of this new expansion plan is very important. Ben Schachter, analyst at Broadpoint Amtech, said that the Google decide to out because some doubt for investors.

The potential of internet users in China is large and growing Google’s investors worried about losing revenue during this despite Google’s profit in China was only donating 1 percent of Google’s total profits.

After all, this leave decision hit Google’s stock in the Nasdaq stock market. Since ensuring out from China, Google shares fell 5.2 percent, while the Nasdaq index rose just 4 percent.

Google’s decision to expand into Japan and South Korea seemed to replace the loss of potential profits in China. ComScore Inc. research institute said, Google’s market share in Japan and South Korea are each about 50 percent and 8 percent. In South Korea, Google is competing with Naver, NHN’s search engine Corp.. These companies control 51 percent market share.

Andy Miedler, an analyst with Edward Jones & Co., saw that the two countries growing market no less high than China. Miedler recommends buying Google shares. “In order for Google’s expansion plan to realize the level of state more growth potential,” said Miedler.

Kaufman Brothers LP analyst Aaron Kessler also give the same recommendation. Japan is a vast market and Google’s market share continued to climb there. “For Google, the Japanese became a key market their businesses in Asia,” said Kessler.

Although a similar recommendation, Schachter called Google’s position in this expansion effort is the underdog. “It’s an unusual position for them,” he said.

The internet giant like Google having a lot of problem due to dozens of censorship in china, it also happen to other popular site including social networks like facebook, my friend in china told me that she can’t access facebook, because of that censorship. The impact for foreigner or other people who used to or work by accessing this kind of site is :” have no choice than use VPN”.

Actually, I think this censorship didn’t really have impact to china people itself, because they still have some local website that have similiar function like this cencored web, just say : baidu search engine that have more than 50% dominance in china, renren china popular social network alike facebook, youku or taidu the giant video database similiar to youtube and so on. (I already tested some of this site and it really has similar function)

Before writes this topic, I make post about the reason why Google will leave china (now it actually happen),  it contains information about how Google infrastructure being attacked in china. So with their decision it show that they also lose one of their line in china.

Now, there’s one question, how long this giant search engine will stand in china?