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Edition: U.S. Article Comments (2) Slideshow Save Email Print Reprints Most Popular Most Shared Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 Democratic senator's lead shrinks in California: poll 08 Jul 2010 California transit cop verdict sparks looting 2:32am EDT North American concert sales plunge in first half 08 Jul 2010 UPDATE 1-US 30-yr mortgage rate drops to new record low 08 Jul 2010 Viagra-popping seniors lead the pack for STDs 06 Jul 2010 Netanyahu bodyguards' guns go missing on U.S. visit | Video 07 Jul 2010 Germans shell-shocked by oracle octopus 06 Jul 2010 LeBron James joins the Heat in search of elusive title 12:17am EDT BP slows Alaska offshore oil drill plan 08 Jul 2010 Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 Viagra-popping seniors lead the pack for STDs 06 Jul 2010 Democratic senator's lead shrinks in California: poll 08 Jul 2010 California transit cop verdict sparks looting 2:32am EDT Aircraft completes first solar-powered night flight | Video 08 Jul 2010 Netanyahu bodyguards' guns go missing on U.S. visit | Video 07 Jul 2010 Double dip fears sends investors to cash: EPFR 08 Jul 2010 BP slows Alaska offshore oil drill plan 08 Jul 2010 Analysis: Money managers see no double-dip 08 Jul 2010 Google's Schmidt undaunted by Apple or Facebook 08 Jul 2010 Google confident of getting China web license Digg This Tweet This Share on LinkedIn Share on Facebook Related News Q+A: Why is China so important to Google? 2:08am EDT Google's Schmidt undaunted by Apple or Facebook Thu, Jul 8 2010 Related Topics Technology » ipad » Media » China » China Labor Unrest » 1 / 8 Google Chairman and CEO Eric Schmidt (R) speaks beside co-founders Sergey Brin (L) and Larry Page at the Sun Valley Inn in Sun Valley, Idaho July 8, 2010. The resort is the site for the annual Allen & Co's media and technology conference. Credit: Reuters/Mario Anzuoni By Alexei Oreskovic and Paul Thomasch SUN VALLEY | Fri Jul 9, 2010 2:08am EDT SUN VALLEY Idaho (Reuters) - Google Inc Chief Executive Eric Schmidt expressed confidence the company will secure a license to operate a website in China, confounding speculation Beijing may shut down its flagship site there. Schmidt, addressing executives and financiers at an annual gathering of the industry's movers and shakers in the Idaho mountain resort of Sun Valley, said he expected Beijing to renew its license to operate a website in the world's largest Internet market, but offered no timeframe. Analysts said Google's decision to stop automatically rerouting users to its uncensored search page showed a softening of stance and willingness to compromise to maintain a foothold in China, the world's largest Internet market by users. "We would expect we would get the necessary license," Schmidt said. "We now expect to get a renewal." Google stunned markets and consumers in January when it warned it might quit the country, saying it would not provide the censored search results that China requires. The company's row with the Chinese government over Internet censorship and hacking attacks added to a burst of tensions between Washington and Beijing, which also saw diplomatic spats over China's currency, U.S. arms sales to Taiwan and Tibet. But tensions have subsided in recent months. On Thursday the Obama administration declined to label China a currency manipulator, and a decision to allow Google to keep its Chinese website could remove another source of friction. In March, Google began to redirect visitors to its China website to a search site in Hong Kong that provided uncensored results. But last week, Google said it would stop automatically rerouting users after Beijing indicated it would not renew its Internet Content Provider license if it continued to do so. "The government views the January announcement as a loss of face," said Edward Yu, chief executive of Beijing-based research firm Analysys International, speaking before Schmidt's comments. "But because Google has now made this move, there is a chance they will most probably meet in the middle and Google will get the license." NO DEADLINE China's Ministry of Industry and Information Technology said on Wednesday that it was reviewing Google's license renewal application but gave no deadline for completion. Two similar stand-offs in the past, one involving major PC makers like HP and Dell, and the other global chip leader Intel, ended in compromises that saw Beijing back down under huge international pressure. Analysts and investors have discounted a severe curtailment of Google's business in the world's No.3 economy. Its stock has slid more than 26 percent this year, hit partly by fears that its stance against censorship will incense a Chinese government intent on maintaining control over the flow of information within its borders. By contrast, local search leader Baidu Inc has seen its stock soar about 75 percent since Google's announcement on investor hopes for a big market share gain. An outright license rejection -- as expected by some analysts -- could spell future trouble for Google's non-search businesses in China, such as Android-based mobile phones, now carried by the nation's largest telecoms carriers. Google's search business in China accounts for a tiny slice of the company's $24 billion in annual revenue. Analyst estimates of Google's annual revenue in China range from $300 million to $600 million, but long-term growth prospects are key. Google now operates a landing page for its Google.cn website and clicking anywhere on the page brings the user to the Google.com.hk site. But if Beijing refuses to renew its license, the site would be effectively shut down. Schmidt's comments come halfway through what has been a tumultuous year for the company, as the world's No.1 search leader deepened its rivalry with iPhone-maker Apple and social network Facebook. Google is due to report its second-quarter financial results next week. Shares in the company ended Thursday up 1.4 percent at $456.56 and were little changed after-hours. (Additional reporting by Melanie Lee in Shanghai; Editing by Alex Richardson) Technology ipad Media China China Labor Unrest Comments See All Comments (2) | Post Comment Jul 08, 2010 11:39pm EDT unlikely they will get anything if they go into their next meeting dressed like that! tonyreno Report As Abusive Jul 09, 2010 1:14am EDT News Flash;, China doesn’t need Google. GRJensen Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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