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Google to Move from China to Hong Kong

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Web giant ends censorship of Chinese search engine. Google Inc. will shift its search engine for China off the mainland but won't shut it down altogether, and it will maintain other operations in the country.

It's an attempt to balance its stance against censorship with its desire to profit from an explosively growing Internet market.

On Monday afternoon, visitors to Google.cn were being redirected to Google's Chinese-language service based in Hong Kong. The page said, according to a Google translation, “Welcome to Google Search in China's new home."

Google's compromise could resolve a 2 1/2-month impasse pitting the world's most powerful Internet company against the government of the world's most populous country.

Google plans to keep its engineering and sales offices in China so it can keep a technological toehold in the country and continue to sell ads for the Chinese-language version of its search engine in the U.S.

But Google is still taking a risk. The revolt against censorship threatens to crimp Google's growth, particularly if taking the stand prompts the Chinese government to retaliate by making it more difficult for the company to do business in the country. The ruling party, for instance, could use its filters to block people on China's mainland from connecting with Google's Hong Kong-based service.

Investors, not surprisingly, have seemed to be more interested in profit than principles. Google shares have slipped 5 percent since its Jan. 12 warning about a possible shutdown in China. The technology-driven NASDAQ composite stock index has climbed about 5 percent during the same span.

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