Dell May be Following Google Out of China

Will Google’s departure from China prove to be a harbinger of things to follow? Going by a report  in  a leading Indian newspaper, the answer is quite likely to be found in the vicinity of a “yes.” A report on Google’s exit from China in the Hindustan Times carries a quote from the Indian Prime Minister Manmohan Singh on the prospect of another American tech giant shutting shop in China. The Indian premier is reported to have told the country’s Planning Commission that Dell is about to shutter its China operations. 

The Indian head of government is quoted as having told the Planning Commission,“This morning I met the chairman of Dell Corporation. He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system." Although it is difficult to discount anything that quotes a country’s leader as its source, it is still wise to wait for a clearer picture to emerge.

But there is no denying the fact that the Chinese government has plenty to ponder in the aftermath of Google’s exit.  The Chinese economy may not be under any real threat of a collapse, for the dragon can only founder in the face of an exodus of foreign companies, but it will surely have its hand forced if a few more foreign businesses grow a conscience or leave in search of a more stable environment. It now knows that businesses are not entirely shy of  moving out in search of “safer” alternatives, where they are immune from the whims of a government adamant on making everyone fall in line.

Image Credit: Inventorspot

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