This week internet giant Google announced a “new approach to China” after detecting a “highly sophisticated and targeted attack” on its infrastructure, including the theft of intellectual property and spying on human rights advocates.

Google has announced that it is “no longer willing to continue censoring results on Google.cn” and, if it cannot broker a satisfactory new arrangement with the Chinese Government, may shut down its Chinese operation altogether.

Read the announcement from Google’s official blog

Why is this significant?
This week Google became the first multinational corporation operating in China to publicly confront the Chinese Government. It has threatened to cease its operations if China does not agree to relax restrictions on the information its citizens can access over the net.

What will happen next?
China has set a tough tone ahead of its impending and likely short-lived negotiations with Google, making it clear that it will ignore the demands and reminding all companies that they must abide by state controls of cyberspace.

Nonetheless, this week Google has set an important precedent and new standard for companies operating in China. The Communist Party must now choose between relaxing its control over the net and making enemies of China’s roughly 80 million Google users.

Here is our pick of the best coverage and commentary on Google’s spat:

Sydney Morning Herald: Google’s Fight: US-China Lock Horns

The Australian: Battle of Beijing

Reuters: Chinese Internet Activists Applaud Google, See No Backdown