China has the world’s largest Internet population. Google holds about 35 percent of the country’s search market, compared with about 60 percent for Baidu, so Google’s exit would be a big boost to the company.

Reports surfaced over the weekend that Mountain View, Calif.-based Google was close to shutting down its China search engine after negotiations over censorship stalled. Google wouldn’t comment.

Google had said January it would stop complying with China’s censorship rules after it discovered hackers had tricked human-rights activists into exposing their e-mail accounts.

On Friday, China’s top Internet regulator said Google must obey the country’s laws or “pay the consequences.”

Source : Konaxis