As Google joins Walt Disney in new investment talks in China, a recent Chinese government crackdown on hackers could provide a reassuring backdrop.
In the wake of last month's coordinated hacker attack against Google and other Silicon Valley firms, police have arrested three suspects and launched a crackdown on the nation's largest Web site responsible for training hackers, according to a Monday report on Chinaview.cn.
The so-called Black Hawk Safety Net site listed hacking tools for its more than 12,000 paying members, and the three suspects reportedly received $1 million in membership fees, according to Chinaview.cn. Police were first tipped to the online network in April of last year.
The hacker crackdown could mean a sigh of relief for Google, which is considering a deal to buy into the biggest media and advertising company in China, Bus Online. With the National Security Agency now investigating last month's Chinese hacker attack, the business prospects in China could get sticky for both Walt Disney and Google.
Daniel Duffy, CEO of Valley Network Solutions, Fresno, Calif., says in light of the sheer volume of online activity in Asia, a rough relationship between Google and China would likely incite a more vocal reaction from citizens.
While it might seem risky for Google to remain involved with China and its strict censorship and security philosophies, Google's business-centric attitude will likely trump these concerns. Cutting business ties would send a very strong message to China, but Duffy doubts Google will pull out anytime soon because of the huge amount of revenue the company stands to lose by doing so.
"They're [Google] smart people," Duffy said. "They do their homework, so I'm sure there's some substance to staying involved in China."
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