Internet search major Google Inc is expected to end its operations after talks with Beijing over censorship have been deadlocked with the government insisting on its censorship rights and Google sticking to its views on the bad effects of unbridled censoring.
In a website release, Google is also reported to have drawn up detailed plans for closing its Chinese operations.
Reports said Google may exit China in a phased manner in order not to disrupt its other operations and to protect local employees.
Matters seem to have come to a head after China warned Google on Friday that it has to abide by the country's laws if it is to operate in the country.
"If you don't respect Chinese laws, you are unfriendly and irresponsible, and the consequences will be on you," China's minister of industry and information technology Li Yizhong told reporters on Friday.
The minister was responding to a question on what China would do if Google.cn stopped filtering search results.