Google case may deter US firms from investing in China: Official

US Commerce Secretary Gary Locke said Thursday that Google's problems in China with cyberattacks could deter US companies from investing in the Asian economic powerhouse.

WASHINGTON: US Commerce Secretary Gary Locke said Thursday that Google's problems in China with cyberattacks could deter US companies from investing in the Asian economic powerhouse.

"Recent events, specifically the well-publicized Google incident, have reminded us of the continued challenges faced by foreign and US companies operating in China," Locke told a meeting of the US China Business Council in Washington.

He called on China to continue making strides to be "more transparent, predictable and committed to the rule of law" to reassure American firms.

"If there is backsliding on these issues, it will affect the appetite of US companies to enter the Chinese market and ultimately that will be bad for both the people of China and the United States," Locke said.

Google has threatened to abandon its Chinese search engine, and perhaps end all operations in the country over the recent cyberattacks. It has also said it is no longer willing to bow to Chinese government censors.

But China said the hacking charges were without foundation.
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The White House said last week President Barack Obama was "troubled" by Google's statements it had been attacked by China-based hackers, and demanded official answers.
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