Google was accused by the Beijing News of having .:

Google.cn, launched during the Spring Festival, and is sharing an ICP license with Ganji.com, a Chinese information Website, the Beijing News reported today.

The matter has aroused "concerns" from the Ministry of Information Industry. The regulator who will be probing the issue, the newspaper said.

The search engine operator told the newspaper that their practice is not the first of its kind in China. Yahoo in China is also using the same ICP license as 3721.com.

However, the News said, citing an unnamed source in the ministry, Yahoo and Google are different entities. Yahoo wholly owns 3721.com, but Ganji.com is not one of Google’s partners in China.

According to China’s rules, to operate an internet service without an ICP license is illegal. A foreign company must hand over its operation in China to a Chinese partner, or set up a China-based subsidiary to run the business. 

Google has said that it is doing nothing abnormal and is that its China operations are legal.

BEIJING (AFX) - Google Inc has rejected news reports that it is operating without a valid Internet content provider (ICP) license in China, saying its partnership with a Chinese information website means it has gone through the proper channels.

‘Google has a partnership with Ganji.com, through which we have the required license to operate the Google.cn service in China,’ said a Google spokeswoman who asked to remain unnamed.

Instead of its own ICP license, Google.cn is using the same one as that of Ganji.com, it said.

Regulations covering the internet and media in China are formed by more than a dozen ministries and regulators. It’s entirely possible that Google is in violation of one ministry’s rule and fully approved by another. It’s common to launch a service prior to receiving full approval from all official regulators - this holds true for a number of industries. Google is possibly following the normal process and has received necessary regulatory approval, but it could still be in violation of a law or regulation - which would likely be one that its competitors also violated without anyone noticing.

PayPal China was not fully licensed at launch, and even brick-and-mortar ventures such as auto finance companies operate under conflicting regulations. Waiting for regulatory clarity in China can mean never entering the market (which may not be a bad thing for some companies).

It’s also worth noting that the servers for Google.cn are still in Mountain View, California. So, Google could be operating the China portal without a license but is doing it from the US. How that could that be in violation of Chinese law escapes me.

Bill Bishop : "It is quite possible (the Beijing News item) is a hatchet job planted by one of Google’s competitors. News reports in many publications, even some very well-known ones, are fairly easy and cheap to buy in China."

Bill also points to a venomous article in the China Business Times, , accusing Google of being a rude party crasher.:

"But the China Business Times, a business paper with a sometimes nationalist slant, blasted Google for even telling users that links are censored.

"Does a business operating in China need to constantly tell customers that it’s abiding by the laws of the land?" it said, adding that Google had "incited" a debate about censorship.

The paper likened Google to "an uninvited guest" telling a dinner host "the dishes don’t suit his taste, but he’s willing to eat them as a show of respect to the host.""

Damn that Google, how dare it come to China and incite debate!

As amusing as that article is, after the treatment Google has received in recent weeks from the Western press, Congress and Wall Street, the company surely can’t be enjoying the prospect of the Chinese press joining in the chorus (no matter how different the perspective).

Slightly better news for Google, Becker and have joined the company’s defenders.

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