Google's approach to N Korea could yield net benefits
About the same time that Schmidt was in the North Korean capital of Pyongyang talking up internet freedom, another high-flying technology executive was in Asia. Tim Cook made the rounds in China, checking on Apple's factory floor and talking with China Mobile about access to its 710 million wireless subscribers.
The contrast is worth noting. One executive was doing the obvious and honing a formula, while the other was being brave and trying something new. The former is Cook, the latter is Schmidt, whose goodwill tour did put China on the defensive and, more importantly, spurred a dialogue about North Korea's 24 million people.
Consider the genius of Schmidt joining the former New Mexico governor Bill Richardson in Pyongyang. The Google chairman was the highest-profile businessman to visit since Kim Jong-un succeeded his father in 2011. To Schmidt, it's up to the public to make the internet work. But first, North Korea's government needs to get things going, then get out of the way - or risk being left even further behind.
Schmidt could easily be speaking of China there, and I suspect he was. Google pulled out of China in 2010, tired of doing the Communist Party's dirty work in censoring cyberspace. Headlines from Schmidt's jaunt had to have been seen in Beijing, and not at all welcomed. The last thing China's authoritarian regime wants is some US internet billionaire telling it, or its geopolitical satellites, what to do.
It's also true that Google cannot ignore China's 564 million web users forever. The Google guys with their mantra of "don't be evil" aren't altruists, and Schmidt's North Korea trip, made by way of China, may be the company's first step towards getting back into Asia's biggest economy.
While Cook was looking out for shareholders, Schmidt's goodwill mission did something that neither the administration of Barack Obama nor George W. Bush could manage: make the outrage over North Korea about the pain of its people, not just nuclear weapons and missiles.
US policy towards North Korea is little more than threats, sanctions and browbeating other nations into going along. This is where US business leaders can play a role. The news of the past two weeks - another nuclear test may be afoot - shows why Obama is more focused on brinkmanship than outreach. After decades of failure, new approaches are needed.
US soft power might be just the thing. As Obama's diplomats try to rein in the Kim dynasty, other US executives could follow Schmidt's lead and increase interaction. Can't goodwill missions and future investment deals go hand-in-hand?
Remember, too, that it wasn't diplomatic and military efforts that toppled governments during the Arab Spring, but information. Getting the internet into North Korea, or liberalising it in China, would do more for reform there than a US carrier fleet. Isolating the Kims has achieved no more than sanctions have against the Castros in Cuba, aside from inflicting privation on the populace. At what point does the US admit a policy does not work and find a new one?
No one is seriously advocating appeasement. Nor should corporate America be rewarding Kim with the opportunity to appear in propaganda photos with the likes of Facebook's Mark Zuckerberg or JPMorgan Chase's Jamie Dimon. But cultural exchanges might play a positive role in wooing the social-media-age Kim (thought to be 28 or 29), who is said to be in awe of the US basketball greats Michael Jordan and Kobe Bryant.
Schmidt's 19-year-old daughter accompanied him to North Korea and demonstrated the soft-power effect by inspiring this New York Daily News headline: "Top Google Executive's Daughter, Sophie Schmidt, Recounts Secretive Trip to North Korea With Dad and Freelance Diplomats."
Her blog made the rounds with unvarnished observations of the people and things encountered along the way. (One example: "The best description we could come up with: it's like The Truman Show, at country scale.") It gave cyber-legs to the human element that gets all too little attention.
This week, Google took a step in that direction, revising its Maps formula to add North Korea and offer a rare glimpse of the nation's vast prison camps. While cartographers have been detailing the Hermit Kingdom's interior for years, Google is bringing these views to the masses.
It is fine that Apple's Cook is taking care of his fiduciary responsibilities in north Asia. It's even better to see one of his peers trying to influence a region that needs something to dream about aside from cool smartphones.
Bloomberg
Frequently Asked Questions about this Article…
Eric Schmidt, Google's chairman, made a widely publicised goodwill trip to Pyongyang with former governor Bill Richardson. The visit drew criticism for potentially playing into North Korean propaganda but also spotlighted the humanitarian situation there. For investors, the trip highlights how high-profile executive actions can affect corporate reputation, public dialogue and regulatory or diplomatic attention around a company like Google.
The article notes that Google left China in 2010 over censorship disputes and cannot ignore China's large online population. Schmidt's high-profile North Korea visit — routed through China and widely reported — may have put Beijing on the defensive. Investors should see this as a reminder that Google’s global positioning and public diplomacy can influence access to major markets like China and its hundreds of millions of web users.
Google revised its Maps product to include more detailed views of North Korea, including rare glimpses of prison camps. This move underscores Google's role in expanding information access and shows the company's capability to bring sensitive geopolitical content to mass audiences — a factor investors might weigh when considering reputational risk and the social impact of Google’s products.
Tim Cook focused on business fundamentals in China — visiting factory floors and discussing access with China Mobile for hundreds of millions of subscribers — which is a clear shareholder-oriented approach. Schmidt’s North Korea goodwill mission was more about outreach and information access. For investors, the contrast highlights different executive priorities: operational growth and market access (Apple) versus public diplomacy and soft power (Google).
The article suggests that corporate soft power can shift public dialogue and humanise issues that were previously framed mainly around security threats. While not a direct market lever, increased interaction and information access driven by business leaders could affect diplomatic conversations and, over time, create new engagement windows that investors should watch for geopolitical and regulatory implications.
Yes. The article highlights criticism of executives appearing in potential propaganda settings and the reputational risks that follow. Investors should consider the balance companies try to strike between outreach or information access and being perceived as legitimising authoritarian leaders, which can lead to public and political backlash.
Soft power refers to cultural exchanges and information initiatives — such as executives visiting other countries or bringing internet access — that can influence attitudes without force. The article argues such engagement can humanise isolated populations and spur reform. For shareholders, soft power initiatives may carry long-term strategic benefits but also short-term reputational risks to weigh.
Yes. The article describes Tim Cook’s China tour as focused on shareholder interests: inspecting Apple's supply chain in factories and pursuing talks with China Mobile to potentially reach its 710 million wireless subscribers. This is presented as a more conventional, profit-and-market-access driven approach compared with Schmidt’s goodwill mission.
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