The Chinese government has renewed the licence under which Google runs its local website, a decision that reassures investors over the legal basis for foreign internet companies’ business in the country.
“We can confirm that the government has renewed our [internet content provider] licence,” a Google spokesperson said. The announcement comes less than a week after a set of new regulations took effect which appeared to put the legal structure of many foreign and overseas-listed Chinese internet companies at risk.
The rules, spelling out how the Chinese government will review acquisitions of Chinese companies by foreign investors for national security implications, say that foreign investors will not be able to avoid a review through techniques such as contracts that give them control over a domestic company.