World's largest web domain registrar - - also pulling out of China

Discussion in 'Economics' started by Kassz007, Mar 25, 2010.


    "...'chilling' new requirements imposed by the Chinese authorities..."

    "...Go Daddy was one of the companies hit by Chinese-based cyberattacks in December that contributed to Google's decision to stop self-censorship there."

    "'Since services and information are our most successful exports, if regulations in China effectively prevent us from being competitive, then they are a trade barrier,' Brin said."

    "She said Go Daddy is 'concerned for the security of the individuals affected by CNNIC's new requirements, as well as for the chilling effect we believe the requirements will have on new .cn domain name registrations. For these reasons, we have decided to discontinue offering new .cn domain names at this time," Jones said. 'We didn't want to act as an agent of the Chinese government.'"
  2. This is non-news. .cn domains have requirements that GD can't automate, that require actual customer service, so it's not profitable for them to provide those registrations. Nice bit of marketing junk though this whole "China Censorship" thing, eh?
  3. Did you read the article? I am no expert on the subject, but what I gather from the article is that China has recently enacted new regulations for anyone wanting to register a .cn domain (picture ID, Chinese business number, registration forms, etc.)

    This event alone I think would be non-news. But coupled with the Google story, I think it is the beginning of a trend.

    Companies of this size do not pull out of the largest potential customer base in the world for no reason...
  4. Slap 25-50% tariffs on China. Time to get their attention. They want free trade in other countries, and pull things like this on companies trying to compete there.

    We need Hugo Chavez for this one issue only. Unafraid to act, even though he is an idiot :D

    This is free trade?

    US Exports to China (Goods) 69,576.0

    China Exports to USA (Goods) 296,402.1

    Delta: -226,826.1
  5. The Canadian Finance Minister, Jim Flaherty, touched on this yesterday on a Canadian news program. He thinks that unless China agrees to let the Yuan appreciate, other countries will begin placing tariffs on China, which will hurt all countries involved. He specifically mentioned USA as the politicians there have already begun to ratchet up the rhetoric and posturing.
  6. My company is an ICANN registrar so I am a bit of an expert on the subject.

    And there is a very good reason GD is pulling out - they can't make money with the new rules.
  7. So you are saying this pull out has nothing to do with censorship, or their involvement in the hacking situation, like GOOG? It is strictly a business decision? What motivation would Go Daddy have for coming out in this manner? Save face on their business model?
  8. Thanks To Google, Baidu Share Price Tops $600 For First Time Ever

    I like the comments on the page:

    "Actually, google not only censor in China. They already have censorship in UK, German and French.

    Will Google plan to leave market in UK, German and French too?"

    "Google is lying about its reason of leaving china. the real reason is failing operation there with huge loss of money since it hired stupid people there not work hard to compete local guys like BAIDU but just taking profile."

    "Totally agree, google has failed in China and they were not brave enough to admit."
  9. I don't work for GD obviously so I can't say for a fact why they do what they do, but I do know how hosting and domain business models work. GD cannot automate, as of now, the new Chinese process for .cn TLDs. As GD's business model is only profitable with high-volume, they cannot currently make a profit with .cn registrations. Why would they offer .cn just to lose money? GD provides no real value-add to the market: no new technology, no innovation. They are the cattle herder of the internet and operate business based on the lowest common denominator.

    And yes, their move has nothing to do with censorship, it's just a nice bandwagon to jump on and get free press out of. Think about it: becuase they are now "associated' with the google situation most sentences spoken are "google AND godaddy" - solid marketing move. Not only do they get a nice exit from a non-profitable enterprise but they get to steal some of Google's brand equity.
  10. It's funny how Baidu uses basically the exact same code google does (perhaps even the same one?), but "google sucks".

    I mean honestly. As Americans...would you want the American "gadget" or the Chinese "gadget"? Put yourself in Chinese shoes. Same thing, more money going to China...they're going to go with Baidu.
    #10     Mar 25, 2010