With a deep understanding of both China and the California technology scene, China expert Orville Schell is in a unique position to understand the mentality and thinking on both sides of the Google vs China confrontation.

One key issue in the confrontation, Schell said, is that Google has become more like a nation than a company. By this he means that not only is Google closely connected to the Obama administration, but the company has a high resonance in the western world. Only a company like Google could take such a stance against China, he said in this video recorded at Davos.

As for China, Schell China said that in its very tentative reaction he expects the Beijing leadership to seek a face-saving compromise. It is impossible to imagine that China will yield, but there is a chance, that the government will recognise the importance of Google and be willing to compromise.