1. Google failed in China
Google's China operations contribute a small fraction of the company's overall revenue - the company doesn't disclose the amount, but analysts estimate it was a few percent of its total $21.8 billion in 2008 revenue, or several hundred million dollars. But Google has made significant progress in China in recent years, raising its share of the Internet search market to roughly 36% in the fourth quarter of 2009 from 13% when it started its Chinese-language google.cn site in early 2006, according to data from research firm Analysys International.
Many other foreign companies doing business in China would gladly forgo big profits in the short term for comparable market-share growth in China-especially in an industry where China has more users than any other country (384 million according to the latest statistics). Google has also been particularly popular among the highly sought-after demographic of young, educated, white-collar urban professionals. The company's powerful brand of business and ethics ('don't be evil) has also earned it a fair amount of good will among Chinese Internet users, many of whom are now mourning its (still uncertain) fate. While rival Baidu still has a much larger 58% share of the search market, its brand has suffered as a result of scandals involving paid results and allegations of censorship of sensitive news stories.
Google doesn't say if it's profitable in China, but there's certainly no reason to assume it's not. Baidu, its chief rival, reported net profit of about $153 million on revenue of $468 million for 2008, when it said it had 6,387 employees. Google's revenue would have perhaps half or two thirds that amount, but it likely has a much lower cost base in China than Baidu, since Google is believed to employ well under 1,000 employees in the country, and can use technology developed by its U.S. headquarters.
2. Google.com is not accessible in China
Before Google introduced its China-specific search engine, Google.cn, in 2006, its global site Google.com was subject to periodic blocking in China. But for the last four years, Google.com has been almost always accessible to users in China.
However, the fact that Google.com can be accessed from China doesn't mean that Internet users can get to forbidden content listed in the site's search results. Links to sites