Pure speculation here: I'm guessing that ever since Google decided to enter the Chinese market, there's been a roiling internal debate among Sergey, Larry, and Eric about how to deal with China's repressive policies, and that the hacking incident flipped one or more of them over to the anti-China side. If I had to handicap it, I'd say Sergey was in the "screw China" camp, Eric was in the "let's just keep our heads down and make millions" crew, and Larry was the swing vote. Just my own mental fantasy playing out here. (If have got inside info to the contrary, please share.)
This drama is only just beginning to unfold. I don't see China backing down, ever. I don't see any other U.S. Internet giants following Google's lead, or Uncle Sam doing anything more than issuing vague statements of support for Internet freedom. The question is whether Google will stay the course or will its resolve eventually melt as it loses its still-tiny foothold in the world's largest market.
Will Google stay out of China? Should it? And what about Microsoft and Yahoo? E-mail me: email@example.com.
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