Google stops censoring China-based search services

Users are being redirected to Hong Kong-based site, which may be blocked

SAN FRANCISCO (MarketWatch) -- Google Inc. said Monday it has stopped censoring results on its Chinese search engine after weeks of negotiations with local authorities over the matter, effectively shutting it down in a dramatic move that could imperil the company's presence in the world's largest Internet market.

Google is now redirecting traffic away from google.cn to Hong Kong-based google.com.hk, which offers Chinese-language service with uncensored results.
Google's /quotes/comstock/15*!goog/quotes/nls/goog (GOOG 557.00, -0.50, -0.09%) chief legal officer, David Drummond, wrote on a company Web site that service at google.com.hk is "specifically designed for users in mainland China and delivered via our servers in Hong Kong."
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A company spokeswoman did not immediately respond to a request for comment.
Google announced in January that it had traced a sophisticated cyber-attack to China, and as a result would no longer filter results in its Chinese search service. Google acknowledged that the move could result in having to withdraw from direct competition in China, where Internet search sites are required to censor politically sensitive topics.
Since then, Google has sought to engage with Chinese authorities over how it could operate in the country without filtering results. Theoretically, China-based users could continue to connect to sites such as google.com or google.com.hk following the company's shuttering of google.cn, though their access could become unreliable.
"We want as many people in the world as possible to have access to our services, including users in mainland China, yet the Chinese government has been crystal clear throughout our discussions that self-censorship is a non-negotiable legal requirement," Drummond wrote. Visit Google's blog.
"We believe this new approach of providing uncensored search in simplified Chinese from google.com.hk is a sensible solution to the challenges we've faced," he added. "We very much hope that the Chinese government respects our decision, though we are well aware that it could at any time block access to our services."
Google has managed to capture a significant share of the Chinese search market, though it still lags well behind national champion Baidu Inc. /quotes/comstock/15*!bidu/quotes/nls/bidu (BIDU 581.00, +1.28, +0.22%)
In addition to search, Google has other operations in China, and offers its Android mobile-phone operating system there.
Google will continue its research and development work in China, and will also continue to maintain a sales presence there, according to Drummond.
Last week, a letter from Google's local advertising resellers in China, which pleaded with the U.S. company for clarity on its intentions, was posted publicly.
Shares of Google fell slightly to close at $557.50. Baidu's U.S.-traded shares rose more than 1% to close at $579.72.

From: www.marketwatch.com