Li Yizhong, minister of industry and information technology, told reporters that Google would help boost the development of China's Internet industry if it opts to stay.

In that case, however, it would have to comply with Chinese regulations requiring censorship of search results for sensitive material or "bear the consequences" for not doing so, the minister warned. "It would be irresponsible and unfriendly for Google to insist on doing something that goes against China's laws and regulations," he added.

Li was speaking at a press conference on the sidelines of the National People's Congress.

Google, the world's largest Internet search engine, said in January that it was contemplating a withdrawal from China on account of China- based cyber attacks and surveillance activities along with attempts to further limit free speech in cyberspace.

Google.cn now has more than a 30 percent share of the Internet search engine advertising market in China, Li said.

The Wall Street Journal earlier this week quoted Google CEO Eric Schmidt as saying at a media summit in Abu Dhabi that Google is in "active negotiations" with the Chinese government and "something will happen soon."