Michael Dell, the founder and chief executive of IT giant Dell, has refused to be drawn into Google’s decision to shut down its mainland Chinese search business, but has emphasized the importance of the Chinese market to Dell’s growth.
Google finally made good on its promise to withdraw its search business from mainland China on Tuesday, shutting its Chinese search portal and re-directing traffic to its Hong Kong search portal, where search results are not subject to censorship by the Chinese Government.
Beijing has reacted angrily to Google’s move.
But Michael Dell, speaking at a conference in New Delhi, would not be drawn into the tense situation.
“I think if you have a question about Google you should go and ask Google,” he said on Tuesday, pointing out that Google is an important customer of Dell.
IT commentators have suggested that Dell could be exposed to the Google versus China spat, as Dell is planning to sell a smartphone based on Google’s Android platform in China.
While Dell wouldn’t comment on the tech sector tensions, he did emphasise how important the Chinese market has become for Dell.
The company has 8,000 employees in China and demand for its products is surging, with demand from small and medium business climbing 110% in the last quarter.
China is also a crucial manufacturing hub for the company. This year it will spend $US25 billion sourcing parts from that market.
“China has been one of the great growth stories in Dell’s history,” Michael Dell told the conference.
James Thomson’s trip to India was sponsored by Dell.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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