Google's China Crisis getting worse

The on-going battle between Internet search giant Google and the Government of the People Republic of China has taken another twist.

Google has postponed the Wednesday launch of its much-anticipated Nexus One app phone but has declined to give a reason, or say whether the launch would be rescheduled at a later date.

The expanding search giant has told the Chinese Government that it is no longer willing to censor search results after it was discovered that a number of well-known anti-Government dissidents and journalists had their Gmail accounts footled with.

Google hasn't quite gone as far as explicitly pointing an accusatory finger at China's security agencies, but the implication is pretty clear.

Responding to threats that Google might withdraw from the country altogether, China was heard to mumble, "Turn the light off, and don't let the door hit you in the Aris on your way out."

Google holds just 30 per cent of the Chinese search market, overshadow by the country's home grown Baidu service. Western companies have failed to make major inroads into the Chinese smart phone market with even the ubiquitous iPhone failing to make a significant impact.