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3 Companies That Lost to Chinese Censorship

By Kevin Chen - Apr 16, 2013 at 2:00AM

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Chinese political protectionism hurts Google, Facebook, Yahoo; Baidu, Renren, Sina profit

Investors in China know that Beijing holds relatively tight controls over commerce in its country, but few understand the extent to which China will help domestic companies succeed. In the following video, Fool contributor Kevin reveals just how important Beijing's blessing is to your investments. 

When looking at the history of Google (GOOGL -0.94%) and Facebook (FB 2.05%) in China, we see what The Economist has called political protectionism. While Google -- in a sense -- voluntarily shut down its service in China, Facebook was blocked. Whatever the political reasons behind these actions, it's clear that the winners have been Baidu (BIDU 1.86%) and Renren (RENN 0.97%).

Even when foreign companies like Yahoo! have been forthcoming in self-censoring themselves, Beijing seems to put up obstacles to favor its domestic companies like SINA (SINA), which ultimate profit.

To learn more about the effect Chinese censorship has had on these public companies, watch the video now.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,299.31 (-0.94%) $-21.70
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$202.70 (2.05%) $4.08
Baidu, Inc. Stock Quote
Baidu, Inc.
BIDU
$119.11 (1.86%) $2.17
Renren Inc. Stock Quote
Renren Inc.
RENN
$27.98 (0.97%) $0.27
SINA Corporation Stock Quote
SINA Corporation
SINA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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