China Renews Google License

Google will continue to exist in China after a compromise was reached between the Internet giant and the government. The Chinese government confirmed that it has renewed Google’s license to operate in the country, ending a monthslong conflict that stemmed from China’s strict censorship rules.

The compromise includes a promise from Google that it would stop automatically rerouting traffic of Google.cn to its Hong Kong counterpart. Google rerouted Google.cn users to the Hong Kong site early this year in an effort to bypass China’s censors. Under the new terms, Google users in the mainland can still access the Hong Kong version but it would require them to click a link.

The license renewal ensures that Google would continue to operate at least for another year in the country where its online advertising market could grow up to $20 billion in the next few years. China could also benefit from the presence of Google as it tries to fend off allegations of having a not so friendly economic environment for foreign companies.