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China 'to renew Google licence' China 'renews Google web licence'
(about 2 hours later)
The Chinese government has been in a long-running dispute with GoogleThe Chinese government has been in a long-running dispute with Google
Google boss Eric Schmidt has said he expects the internet giant to be granted a new licence to operate in China. The Chinese government has renewed Google's licence to operate in China, the internet giant has said, ending a long-running stand-off between the two.
Google gave no details of the licence renewal.
There had been speculation China would revoke the licence after Google began redirecting Chinese users to its unfiltered search site in Hong Kong.There had been speculation China would revoke the licence after Google began redirecting Chinese users to its unfiltered search site in Hong Kong.
This was in protest at China's stringent censorship laws.
But last month, Google said it would no longer automatically redirect users in a conciliatory move towards Beijing.But last month, Google said it would no longer automatically redirect users in a conciliatory move towards Beijing.
Instead, Chinese users would be sent to a "landing page", which would send them to the Hong Kong site.Instead, Chinese users would be sent to a "landing page", which would send them to the Hong Kong site.
"We would expect we would get the necessary licence," Mr Schmidt told a conference in Sun Valley, Idaho. "We are very pleased that the government has renewed our ICP (internet content provider) licence and we look forward to continuing to provide web search and local products to our users in China," Google's lawyer David Drummond said an e-mailed statement.
"We now expect to get a renewal". On Thursday, Google boss Eric Schmidt said that he expected the Chinese government to renew the licence.
'Loss of face' 'Cyber attack'
Google has had a long history of run-ins with the Chinese authorities, but without a licence granted by Beijing, it cannot operate in China.Google has had a long history of run-ins with the Chinese authorities, but without a licence granted by Beijing, it cannot operate in China.
"Our operations in China are completely at the discretion of the Chinese government," Mr Schmidt said. "Our operations in China are completely at the discretion of the Chinese government," Mr Schmidt has said.
In January, Google said it might pull out of China following what it called a "sophisticated" cyber attack originating from the country.In January, Google said it might pull out of China following what it called a "sophisticated" cyber attack originating from the country.
The announcement was not well received in Beijing.The announcement was not well received in Beijing.
"The government views the January announcement as a loss of face," said Edward Yu, at Beijing-based research firm Analysys International. The licence renewal is key to Google. Losing business in China, which already has more internet users than any other country despite relatively low penetration, could harm the company's future growth prospects.
"But because Google has now made this move [not to automatically redirect users to Hong Kong], there is a chance they will most probably meet in the middle and Google will get the licence."
Much is at stake, for losing business in China, which already has more internet users than any other country despite relatively low penetration, could harm Google's future growth prospects.