Google on Tuesday 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.
One person briefed on Google's decision said it was linked to the company's threat that it will shut its Chinese-based search engine if restrictions aren't eased.
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.
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Marsha Wang, a spokeswoman for Google Inc., however, only said the planned Wednesday ceremony with local carrier China Unicom Ltd. was postponed. She declined to give a reason or say when the launch might be rescheduled.
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.
Beijing referred to Google by name Tuesday for the first time since its Jan. 12 announcement that it would no longer censor search results in China and might shut down Google.cn. The government said the search giant must obey China's laws and traditions, suggesting it was giving no ground in talks with the company.
"Foreign enterprises in China need to adhere to China's laws and regulations, respect the interests of the general public and cultural traditions and shoulder corresponding responsibilities. Google is no exception," said Foreign Ministry spokesman Ma Zhaoxu at a regular news briefing.
(More on Techland: Google Tells Web Companies To Obey Controls)
Beijing promotes Internet use for business and education but blocks access to material deemed subversive or pornographic, including Web sites abroad run by dissidents and human rights groups.
Free speech groups and the White House lauded Google's stance but there was no indication other companies might follow its lead and challenge government controls.
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