Please ensure Javascript is enabled for purposes of website accessibility

3 Companies That Lost to Chinese Censorship

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.