Google (NASDAQ:GOOGL) to Setup in China

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By Chris Hillman on November 21, 2014 Intl News

Google (NASDAQ:GOOGL) is reentering China. According to latest news, the internet giant is working on setting up an app store in China. This is expected to be a massive strategic step towards global expansion, in an effort to increase its reach. This is a second effort to enter in to the Chinese market on Google (NASDAQ:GOOGL)’s part. The tech giant withdrew from China in 2010, after quite a dispute over censorship issues that became a major headline.

Since then, Google (NASDAQ:GOOGL) has widened its business acumen by many folds with ventures such as its internet services, mobile apps and devices, as well as several other hardware components under its belt. It is the hardware advancement into the field that has made Google (NASDAQ:GOOGL)’s reentry into the Chinese market more probable.

A concise report, titled ‘The Information’ has been published and has several unofficial quotes from Google (NASDAQ:GOOGL) officials. According to these reports, Google (NASDAQ:GOOGL) has approached authorities in Beijing to work out the process of opening up a Chinese version of its online play store that will have thousands of applications that have Android support.

Despite these claims, Google (NASDAQ:GOOGL) still hasn’t succeeded in acquiring an official permit from authorities at Beijing that allow the tech giant to open up its stores in China. Some analysts have gone further to say that the company might not even get the permit in light of its harsh history with the Chinese market. In order to pass the test, Google (NASDAQ:GOOGL) will need to cut down on a significant amount of its content that the Beijing officials find offensive and threat to their communal theories.

The free Android OS, owned by Google (NASDAQ:GOOGL) is being used in most local smartphone brands in China. Brands such as Xiaomi, Huawei and ZTE are a few examples. Google (NASDAQ:GOOGL) is very aware of the importance of an expansion strategic setup in China, as every smartphone manufacturer in the market has tactical plans for developmental growth into the ever growing technological Chinese market.

Google (NASDAQ:GOOGL)’s plans to make it into the Chinese market are still quite vague as both parties are still engaged to resolve difference of opinions. It seems Google (NASDAQ:GOOGL) will need to agree to do as the officials at Beijing demand is it has any hopes of setting up in China. Google (NASDAQ:GOOGL) needs the Chinese market more than otherwise.

While other smartphone manufacturers try to cast their niche in the Chinese market, Google (NASDAQ:GOOGL) is left with no choice, but to keep a low profile in the country. However, the Android market is quite strong in China, which is some consolation to Google (NASDAQ:GOOGL). This will certainly go in Google (NASDAQ:GOOGL)’s favor to win the bid of opening app store in the Chinese market. The tech giant awaits a decision from Chinese officials and will be quite keen to set itself up in the country as soon as possible, to keep up with its strong competitors that have strong business hold in China.