It has been reported in China Tech News that Dr. Kai-Fu Lee, president of Google (NASDAQ: GOOG) China claims Google will be moving some servers to China in an effort to better serve that country. I have yet been unable to confirm Lee's claim. At this point it appears to be mostly optimistic speculation on Lee's part although the move would have significant advantages for Google in serving the Chinese sector of its market and the growth it needs there.

Google is not the largest search entity in China. Putting servers in that country would establish a tangible presence there and enhance the company's branding efforts in China. Lee also claims that Google would be offering free mapping services to China mobile users. At present, mobile communications are exploding in Asian markets.

Drawbacks to this reported move by Google would include exposure to significant risks which Google will need to aggressively address in order to make the move successful. Data security is less than optimal in China and being that a communist stronghold requires a different level of information disclosure than the free world is used to, Google would be playing in an arena which is governed by a whole different set of rules. Additionally, spurred by stiff competition in China's technology sectors, the Chinese government has had to initiate actions to deal with an influx of infrastructure vandals who are damaging transmission lines and equipment there.