China renews Google license, ending standoff

chart_google.top.gifGoogle's stock price has dropped about 18% since March 22, when it stopped censoring search services on google.cn, its Chinese search site. By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Google said Friday that it has renewed its license with the Chinese government to continue operating in that country, ending a standoff over censorship.

"We are very pleased that the government has renewed our [Internet content provider] license and we look forward to continuing to provide Web search and local products to our users in China," said Google on its blog.

Google did not make any concessions regarding censorship, Tokyo-based Google spokeswoman Jessica Powell said.

"I don't think we gave anything up," she said. "We asked the government to renew our license to make some products that don't require any censorship. We are going to continue to offer uncensored Web search with google.com.hk."

Google's (GOOG, Fortune 500) stock jumped 4% in pre-market trading, while shares of Baidu (BIDU), the lead search engine in China, fell more than 7%.

The search giant had agreed last week to stop its system of automatically redirecting users of the Chinese site, google.cn, to its Hong Kong search engine, Google.com.hk. The move had displeased the Chinese government.

Colin Gillis, analyst and research director for BGC Partners, said that under the new system, Google users on the Chinese mainland will have to deliberately access the uncensored Hong Kong domain, without being automatically sent there.

"Now mainland users have to click a link to the hk site," he said. "It makes the mainland user more of an active participant in accessing unfiltered Google search results."

The renewing of Google's ICP license allows the company to continue operating in the communist country, despite its penchant for censorship of Web material.

Without an ICP license, Google said it "would effectively go dark in China."

Gillis said there was little risk that China wouldn't renew the license, because "China wants to control Google."

The announcement came one day after the U.S. Treasury said that China did not "manipulate" its currency. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,098.45 18.88 0.11%
Nasdaq 4,580.27 22.58 0.50%
S&P 500 2,003.37 6.63 0.33%
Treasuries 2.34 0.01 0.39%
Data as of 11:01pm ET
Company Price Change % Change
Bank of America Corp... 16.09 0.08 0.50%
Apple Inc 102.50 0.25 0.24%
Intel Corp 34.92 0.27 0.78%
Facebook Inc 74.82 0.96 1.31%
General Electric Co 25.98 -0.03 -0.12%
Data as of Aug 29

Sections

The deal would value Vice at $2.5 billion. The online media company would also create content for the cable network, delivering a wider audience. More

Gas prices are falling to nearly $3 a gallon in some parts of South Carolina, and that will soon be common in much of the country. More

Netflix told the FCC that its speed on the Comcast network became so slow that customers began dropping their service. More

The Coolest Cooler is the most successful Kickstarter campaign in the site's history, raising $13.3 million from over 62,000 backers. More

Five CNNMoney readers share stories about saving that you can learn from: What they would do differently if they had another chance. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.