Google Says China Situation Stable for Now

Google CEO Eric Schmidt has assured shareholders that the Internet search company’s China operations are stable after a falling out with the country’s government.

Schmidt cautioned the situation could quickly change if China’s ruling party decides to retaliate against Google for its stand against the country’s Internet censorship rules. His comments came Thursday in response to a shareholder question at Google’s annual meeting.

Google sparred with China’s leaders for two months before finding a way to stop censoring its search results in the country without abandoning one of the Internet’s key markets. Since March, Google has been funneling all mainland search requests to Hong Kong. That part of China isn’t governed by the same restrictions.

MOUNTAIN VIEW, Calif. (AP)