Google Set To Leave China (GOOG)

Google (NASDAQ: GOOG) is preparing to close its Chinese search engine according to a source familiar with the company.

The source says Google is "99.9 percent" certain to exit China as talks over censorship have stalled. On Friday the Chinese government said it was not willing to compromise on internet censorship to prevent Google from leaving the country. Two months ago Google said its local search service in China, Google.cn, would stop following Chinese censorship laws. The company is unlikely to exit China quickly, however, as it seeks an orderly closure and hopes to keep other operations in China going.

The person familiar with Google says the company fears a backlash from Chinese authorities that may make it impossible for the company to continue operating in the country.

The company's other operations include its research center in Beijing and a sales force that sells advertising on the Chinese-language Google.com service, which is based outside China.