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Google is all about the algorithm. They have come up with the best way to display the most relevant content.
Major search engines ARE going to operate in China. Even if all the major ones boycotted it, someone would come along and build a search engine especially for China, which would be of much lesser quality.
By providing service, even in censored form, Google is going to maximize the Chinese search experience. If I were living in that communist hellhole, I would certainly prefer a censored Google over a censored knockoff.
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