China tries to keep Google conflict from damaging business ties with US - by Joe McDonald

China tried Friday to keep its censorship row with Google from damaging business confidence or ties with Washington, promising good conditions for foreign investors but giving no sign it might relax Internet controls.  U.S.-China trade and economic ties will not be affected by any Google Inc. decision to withdraw from China, said Commerce Ministry spokesman Yao Jian at a regular briefing. However, he insisted foreign companies must obey Chinese law.

"China will still strictly adopt a policy of openness and offer a good investment environment," Yao said. "We emphasize that foreign companies including Google should all follow international standards and respect local law and regulations and local culture and customs to shoulder social responsibility."

The loss of such a high-profile company would be an embarrassment to communist leaders, who want to make China a technology leader. But the ruling party sees control over information as critical to maintaining its monopoly on power.

U.S.-Chinese ties are periodically strained by disputes over trade, human rights and U.S. support for self-ruled Taiwan, claimed by Beijing as its own territory. But the two sides maintain dialogue in a series of forums and say they want constructive relations.

The White House applauded Google's announcement that it would stop censoring search results in China and might close its China-based Google.cn site after hacking attacks on its Gmail email service. But other companies appear unlikely to follow suit and challenge China's Internet controls.

Note EU-Digest: China should understand "it takes two to tango".

The Canadian Press: China tries to keep Google conflict from damaging business ties with U.S.