What`s next for Google's operations in China?

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Two months after Google Inc shook the world with its threat to leave China on censorship and hacking concerns, there are increasing signs that an exit is imminent as the two sides refuse to back down.

Google said in January a key condition to staying on in China, the world's largest Internet market by users, would be an end to rules that require it to self-censor results. Beijing has repeatedly thrown cold water on any such expectation, maintaining that all Internet firms need to abide by local laws.

Following are the possible paths the world's largest search company could take, and the possible reactions from Beijing:

Google partially withdraws

In addition to its Chinese search site, Google.cn, Google has two research and development centres, hundreds of sales and customer service staff and engineers working on its Android mobile operating system and other initiatives in China.

Google could well decide to pull the plug on Google.cn, but leave its other China-based operations intact.

The manner in which the company executes such a pull-out would also be of importance to its employees and reputation.

If Google goes out with a bang by halting censorship of its China site before shutting it down, hundreds of local employees could be at risk for working for a company that broke local laws.

But given the very public nature of its initial threat, many believe such an underhanded withdrawal is unlikely.

By being up-front about shutting its China search site, Google - whose motto is "Don't do evil" -- could generate positive publicity from sympathetic quarters in the West, including politicians, media and human rights groups.