Google postpones mobile phone launch in China

Google today postponed the launch of its mobile phone in China, adding to the potential commercial fallout of its dispute with Beijing over Internet censorship and e-mail hacking.

"It is postponed," Google Inc spokeswoman Marsha Wang said. A launch ceremony with local carrier China Unicom tomorrow was canceled, she said, but declined to give a reason or say when the launch might be rescheduled.

Another person briefed on Google's decision said it was linked to the dispute with Beijing. The company concluded it would "not be a good experience" for consumers to receive a phone right now with its applications, said the person, who spoke on condition of anonymity due to the sensitivity of the issue.

China has the world's most-populous mobile phone market, with more than 700 million accounts and increasingly prosperous customers who readily pay for the latest technology and services.

Meanwhile, the government said Google must obey China's laws and traditions, suggesting it was giving no ground in talks over Internet censorship and the US search giant's possible withdrawal.

It was the first time the government has referred to Google by name since its Jan 12 announcement that it would no longer censor search results in China and might shut down its China-based site Google.Cn.