Google Cancels Phone Program in China

China Unicom says it received the no-use notification for Google's logo late last year.

Google unilaterally canceled the Google phone (Gphone) development program with China Unicom, signaling a significant adjustment of its development strategy for mobile products in China.

On January 14 China Unicom was not authorized to use Google's Logo and its applications in an internal announcement, and the WCDMA Google Phone release conference originally scheduled on January 20 was canceled, according to a source familiar with the Gphone development program. Weekly meetings between Google, China Unicom, Samsung and Motorola have been canceled as of last week.

The source claimed that in the same day, Gphone manufacturer Motorola received a recall of the newly-developed and mass-produced mobile phone with China Unicom and was required to remove all elements concerning Google. Phone manufacturers would be not allowed to use Google's logo, the name "Google Phone," and the name "Google Nexus One" with many Google applications of the mobile system to be deleted, such as the pre-built search engine and Google Maps. Samsung, another participant in the deal, also received the same notification.

China Unicom says it received the no-use notification regarding Google's logo on Motorola and Samsung Android mobile phones by late December, and just a couple of weeks later, further notices on the phone name were issued.

So far, Google hasn't given any response on the withdrawal of the mobile phone program and the four-side cooperation.

The move has fuelled speculation that Google is preparing to withdraw from the China market. Media reports have said that Google has started to relocate its China staff to Hong Kong. But Google later denied this by saying that none of its Chinese employees have been asked to move.

On January 14, employees of some departments of Google China took a day off due to a safety inspection of internal system and then returned to work on January 15, said Wang Jinhong, head of public relations for Google China. Google employees visited Hong Kong for business on January 15, but it was not to "move our business to the Hong Kong Office," Wang said, adding that Google has always acted in strict compliance with local laws and regulations.