Google Losing Service for Internet firm

Google has effectively closed its Internet search service in China over a censorship dispute, splitting with the country with the world’s most Net users (384 million) after four years.

China Mobile, the world’s largest phone company by subscribers, with more than 500 million accounts, could find its partnership with Google for mobile search services in danger, analysts at brokerage CLSA said in a recent report.

“Some of the Chinese companies may want to play it safe and look at other options,” said Elinor Leung, CLSA’s head of Asia Internet and telecommunications research in Hong Kong.

An Internet company run by one of Asia’s richest men said Tuesday it has ended its affiliation with Google Inc. as the American search giant stopped censoring the Internet in violation of Chinese regulations.

It’s still unclear whether other Chinese companies that partner with Google will follow suit. Representatives for heavyweight Internet portal operator Sina Corp. did not answer calls seeking comment Tuesday.

Companies, however, are liable to think twice about maintaining a partnership with a company that has been condemned by Beijing for running afoul of its censorship rules. From a business perspective, there are also uncertainties and risks for mainland Internet users relying on a Hong Kong service that could end up blocked.

Google’s action did not translate into unfiltered results for millions of Chinese, but shifted responsibility for restricting content to the central government and its formidable Web filters.

This news is from China electronics manufacturer.

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