12 Jul 2010

Google-China stand-off over

1:05 pm on 12 July 2010

A stand-off between the Chinese Government and Google is over, after officials renewed the company's internet licence to operate.

There had been speculation China would revoke the licence, after Google began redirecting Chinese users to its uncensored search site in Hong Kong.

The licence renewal is key to Google. The BBC reports its share price rose 2.8% in Friday trading following the announcement.

Losing business in China, which already has more internet users than any other country, could harm the company's future growth prospects.

Google says it won't describe the renewal as a victory for the company, but sees it as good news for Chinese internet users.