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July 10, 2010

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Google's China license renewed

GOOGLE Inc said yesterday that the Chinese authorities had renewed its license to operate a website, securing the search giant's foothold in the country's fast-growing Internet market.

"We are very pleased that the government has renewed our ICP (Internet content provider) license and we look forward to continuing to provide web search and local products to our users in China," said an e-mailed statement by Google's top lawyer, David Drummond.

The statement, which gave no other details, also was posted on Google's blog. There was no immediate statement posted on the website of China's Ministry of Industry and Information Technology.

Google Chief Executive Eric Schmidt told an industry gathering on Thursday in the United States that he was confident the company would secure the license.

Google closed its Chines mainland-based search engine in March but wanted to keep a website that offers music and other services.

Users had been automatically redirected to Google's uncensored Hong Kong site, but the company stopped that last week after Chinese officials warned the move could mean losing its license.

Analysts said that the company's decision to stop automatically rerouting users to its Hong Kong search page showed a willingness to compromise to maintain a presence in China.

Google, based in Mountain View, California, does not hold the kind of dominant position in the Chinese search market that it does in the US. The search engine operated by Chinese competitor Baidu has about 60 percent of the market to Google's 30 percent.
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