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

RELATED NEWS Google partners call for clarity on China plans China warns Google to obey rules even if it pulls out Google says China talks continue, but pullout signs grow

Google fully withdraws

Google could decide that China isn't worth the trouble and completely pull out, including all its R&D and Android support operations.

Such a move would put hundreds more out of work, and could jeopardize firms like Dell and Lenovo that were banking on Android-based phones as a major part of their push into the China cellular market.

Independent software application developers who were counting on Android phones to carry their programs could also find themselves out in the cold.

China warned last week that it would be "unfriendly and irresponsible" for Google to suddenly stop filtering searches, and added the search giant would have to bear whatever consequences might follow.

Some say that such words could be a veiled warning from Beijing that Google would not be welcome in China if it leaves the local search market, giving the US search giant no other choice than to pull out entirely.

Google stayins in China

Google could cut a deal with Beijing and work out a plan to stay in China under a face-saving compromise.

Many consider this outcome unlikely as Google has stated that freedom from censorship is key to its staying. A condition Beijing is unlikely to bow to given its insistence on direct or indirect control of all media in the country.

In giving in to Google, Beijing would also set a dangerous precedent, possibly prompting other popular Web site operators such as Baidu and Sina to request similar exemption from self-censorship laws.

Thus the probability of regulators bending rules just for Google is highly unlikely, meaning Google would still have to self-censor at some level if it wanted to stay.