Google has announced that it will be cancelling its contracts with seven large Chinese online advertisement resellers on 27 October.
The company has failed to give a concrete reason behind the termination of the contracts but said that it had sent out notices to the seven companies on 27 September, giving them a month's notice, Reuters reports.
Analysts predict that Google's move would prove beneficial for its Chinese rival Baidu which has a commanding presence in the Chinese search market, with more than 70 per cent of the market share.
Financial analysis firm Credit Suisse said in a note that the seven large ad resellers whose contract was terminated by Google were responsible for adding 1.5 billion yuan ($226 million) in Google's revenue from China last year.
Despite the move, Google vice president John Liu has claimed that China remains one of the most important markets for the global search giant.
“Google, together with our team and partners, will spare no effort in helping China users and companies in digital marketing,” he told the AFP.