UPDATE: China: Won't Limit Telecom Firms Use Of Google Android

The Chinese government won't limit the use of Google Inc.'s (GOOG) Android operating system by Chinese telecommunications operators, Ministry of Industry and Information Technology spokesman Zhu Hongren said Wednesday.

"As long as it complies with Chinese laws and regulations, and as long as it has good cooperation with operators...their use of the system won't be limited," Zhu said at a news briefing.

Zhu's comments, which are China's first official word on the future of the operating system, suggest the conflict between Beijing and Google hasn't yet spread to business areas beyond the company's Chinese search engine.

There are several Android-based phones already in China, and the country's three major telecommunications operators are all planning to launch more. Last week, Google said it was delaying the planned China launch of two mobile phone models using the system. The phones, made in partnership with Samsung Electronics Co. and Motorola Inc., were to be launched by mobile carrier China Unicom (Hong Kong) Ltd. (CHU).

Phones running on Android vary widely. Some have software highly customized to the specification of handset partners and carriers, while others come packed with various Google features such as mobile search and Google maps. The phones delayed last week fell into the latter category. Phones with fewer Google features will likely be less affected by the company's conflict with Beijing.

The fate of many Google services in China is uncertain following the company's statement last week that it would no longer censor its Chinese Web site even if that meant halting operations in the country.

Last week Lenovo Group Ltd. said its new smart phone using the Android operating system is on track to be launched in May in China and Google's spat with China won't affect its operations.

-By Aaron Back, Dow Jones Newswires; (8610) 8400-7701; aaron.back@dowjones.com

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