Google

Controversy continues for Google over China plans.

Eric Schmidt, the former CEO of Google, said the Internet is likely to split into a Chinese-led Internet and one led by America, as Chinese companies continue to grow online.

Schmidt made his comments at an event hosted by Village Global VC, according to CNBC.

“I think the most likely scenario now is not a splintering, but rather a bifurcation into a Chinese-led internet and a non-Chinese internet led by America,” he said. “If you look at China, and I was just there, the scale of the companies that are being built, the services being built, the wealth that is being created is phenomenal. Chinese Internet is a greater percentage of the GDP of China, which is a big number, than the same percentage of the US, which is also a big number.”

Schmidt’s comments come as controversy continues over Google efforts to develop a search engine i for the Chinese market that censors results.

Last week, The Intercept reported that Google‘s leaders ordered workers at the company to delete a secret memo that claims the company’s Chinese search engine, codenamed Dragonfly, would track users’ locations and share results with the Chinese government.

According to The Intercept:

The memo was shared earlier this month among a group of Google employees who have been organizing internal protests over the censored search system, which has been designed to remove content that China’s authoritarian Communist Party regime views as sensitive, such as information about democracy, human rights, and peaceful protest.

According to three sources familiar with the incident, Google leadership discovered the memo and were furious that secret details about the China censorship were being passed between employees who were not supposed to have any knowledge about it. Subsequently, Google human resources personnel emailed employees who were believed to have accessed or saved copies of the memo and ordered them to immediately delete it from their computers. Emails demanding deletion of the memo contained “pixel trackers” that notified human resource managers when their messages had been read, recipients determined.

The Dragonfly memo reveals that a prototype of the censored search engine was being developed as an app for both Android and iOS devices, and would force users to sign in so they could use the service. The memo confirms, as The Intercept first reported last week, that users’ searches would be associated with their personal phone number. The memo adds that Chinese users’ movements would also be stored, along with the IP address of their device and links they clicked on. It accuses developers working on the project of creating “spying tools” for the Chinese government to monitor its citizens.