The company earlier this month threatened to pull out of
China and announced it would no longer censor the results of its search engine
findings in China. It did so after reporting that hackers had attacked it from
with China in an effort to access the accounts of Chinese human-rights
activists.

The attack has prompted criticism of China from the Obama
administration and members of Congress.

Schmidt said Google likes the growth it sees in China, but
not the censorship.

William Reinsch, the president of the National Foreign Trade
Council, said Google’s fight with China could be a sign of things to come.

He cited other policies China has imposed to protect local
companies, particularly innovative companies in the tech sector. Those policies
could ultimately hurt China, he indicated, because U.S., European and Japanese
companies could shift their investments to other fast-growing developing
countries such as Brazil or India.

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