As China and Google wage an increasingly hostile war against one another, certain exchange traded funds (ETFs) may present an opportunity. This is especially so if Google leaves or is forced out of China.
The battle between Google (NYSE: GOOG) and China escalated this week: Google routed Chinese users to its Hong Kong homepage; China volleyed back and blocked its denizens from searching sensitive topics on that site, as well. [A New Approach to Emerging Markets.]
While most investors are pretty much shrugging off the news, it would have wide-ranging implications because among the companies that plan to stop using Google tools and services in China include Motorola, China Unicom and Tom Online. All three have pulled Google search from their phones and/or homepages, reports Paul McDougall for Information Week.
It seems like in the Google/China battle, there will be few losers. Google is a rapidly growing giant and relied upon by people the world over for email, document storage and an ever-growing list of other tools. Meanwhile, China has several strong tech companies that are well-prepared to step in and fill any void Google leaves behind. [The Top 10 ETFs Investors Are Trading.]
For more stories about China, visit our China category.
- iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI): Telecommunications are 17.7%