Sagelinka writes "Both Google and the Chinese government appear to be leaking word that the search firm may soon shutter its operations there as negotiations between the two break down. Google first threatened to halt its operations in China after disclosing in January that an attack on its network from inside China was aimed at exposing the Gmail accounts of Chinese human rights activists. At the time, Google also said it was reconsidering its willingness to censor search results of users in China as required by the government. 'I think Google thought China would be flexible,' said Rob Enderle, an analyst with the Enderle Group. Google has since been negotiating with the Chinese government to find a way to continue operating in the country. Google did not respond today to requests for comment on the state of the negotiations with China."