Google poised to leave China

China says Google must play by its rules

It is looking increasingly likely that Google will close its Chinese business.

According to a report in the Wall Street Journal, sources close to Google have said that the firm is nearing its final decision, which is likely to see it pull out of China altogether.

We asked Google for comment, but were told, "We're not providing a running commentary on China".

Google has been wrestling with a decision over its China operation for two months now, ever since it was revealed that Chinese hackers, potentially affiliated with the government, were behind an attack on its systems.

On Friday, the Chinese government said that if Google decided to stay it would have to be on Chinese terms.

Li Yizhong, minister of industry and information technology, said, "If Google decides to stay in China, we welcome and it will help boost the development of the country's internet industry. The company is welcome to expand its business and market share in the country. If it decides to quit, we will follow our procedures.

"I hope Google can abide by China's laws and regulations," he added. "It is irresponsible and unfriendly if Google insists in doing something that goes against China's laws and regulations, and it will have to bear the consequence for doing so."