This is not very good news for Google. After creating a very compelling and affordable tablet that sells for only $200, which could easily become a best seller in China, where people are a lot more price-sensitive, Google finds itself being denied access to the Chinese market with the Nexus 7.

It seems the Chinese Government hasn’t forgotten how Google wanted to leave the country in 2010 because they refused to censor the type of things the Government wanted them to censor. That was a very admirable thing Google did back then, but it obviously wasn’t very pragmatic.

When you plan on turning on a country’s Government like this, first make sure that you are not the only one doing it, especially if we’re talking about a huge country that you want to be in for the next few decades or so. If say 20 huge tech companies would’ve joined together to protest the censorship and restrictions that China imposed, then they might’ve had a chance in changing the Government’s mind. But they went against it alone, while other companies like Microsoft had no problem obeying the local censorship rules.

The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.

The Chinese Government would also like to give preference to its own white-label companies, and give them the opportunity to establish themselves as strong brands and sellers before someone like Google and Asus enter the market with the Nexus 7, even though those companies are using Google’s own software, Android. It doesn’t sound exactly fair, but short of a massive protest from all Android manufacturers, what can Google do?

Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.

Although Google has been expecting to sell 8 million Nexus 7 units by the end of the year, it seems those numbers took into account selling the tablet in China too. Now those plans may be ruined unless Google finds a way to get out of this situation soon. Otherwise, it looks like the Nexus 7 may only be selling 3.5 million units by the end of the year, which is a respectable amount, although it’s no blockbuster.

  • jasontoheal

    Do what’s right because it’s right. Not because the rest of the world is doing it too.
    Credit to google for making a tough decision back then knowing there would be ramifications.

    • +1
      It was the right decision when they did it and it’s good that we still have some companies who don’t just have their profits in their mind all the time.

  • SamsaraGuru

    Google, by refusing to go along with the capricious, totalitarian dictates of the communist Chinese government, did the only thing a corporation or person of honor could do when faced with an enemy who has repeatedly demonstrated with total impunity that it has no respect for human life or rights.

    There are prices to be paid for doing the right thing; does that mean one should not do the right thing. Ultimately the last great evil empire will fall as all despotic regimes have through out all history.

    All of us should join Google and begin a systematic, total boycott of China and its products and help it fall and fail.

    One of the reason I like Google over a company like Apple, whose character frankly is totally in keeping with that of the communists, is that Google does have integrity and isn’t “just about the money”.

    • PacoBell

      Yeah, but that includes practically everything you own, including essential goods. The notion of Chinese products being cheap is a myth. They manufacture everything from inexpensive baubles to luxury items of impeccable workmanship. You can’t really pigeon-hole them. And they’re the only real manufacturing superpower that can sate our population’s hunger for more goods at reasonable prices.

  • alien_x

    Google gained million times more respect for doing the right thing back then unlike other companies who only care about money. it shows how much google care about for people and doesn’t fall in some jackass dictator’s feet.

  • the_don

    Why not launch in other markets? We’d love to buy the Nexus 7 in South Africa… and could we get the Google Music and other services too ;)

  • Southrncomfortjm

    Screw China. Give America a Nexus 10.1 with keyboard dock!

    Seriously, Asus already has the 10 inch tablet with keyboard dock thing down, why not rebrand a slightly lower specced model as a Nexus 10.1, add a keyboard dock and sell it for a reasonable price? Oh yeah.. profits, forgot.

  • joe c

    “Do right” my ass: Google let BP buy itself at the top of the search results to push down news about the oil spill and let Romney buy his way up to look better. They dropped the “don’t be evil” crap a long time ago.

    • Exactly, a lot people have no idea of what they talking about, still thinking they represent justice.

  • Zombie Killer

    There doesn’t seem to be any NEED for it in China. There are a billion perfectly good 7″ android tablets made in China. They cost $50 in North America. They probably cost $10 in China. It isn’t like Google would be competing against APPLE there, they’d just be competing against THEMSELVES.

    What this is, is a blow against ASUS, not Google.