A government spokesman said yesterday that Google (GOOG.NASDAQ) must comply with Chinese policies even if it closes its China operations, the South China Morning Post reported. "On entering the Chinese market in 2007, [Google] clearly stated it would respect Chinese law," said Yao Jian of the Ministry of Commerce. If Google pulls out, it must still comply with Chinese law as it does so, Yao said, which includes a requirement that the MoC be notified prior to closing operations on the mainland. Foreign Ministry spokesman Qin Gang said that Google’s decision does not have wider significance. "[It] will not affect China’s investment environment," he said. "Most foreign companies, US ones included, have good business in China and generate large profits." Google shares fell nearly 3% in trading in New York on Monday, while Nasdaq-listed Baidu (BIDU.NASDAQ) shares gained 4.8%.
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