Google CEO Eric Schmidt has said he expects Beijing to renew the license the company needs to continue operating a website in China.

The renewal had been in doubt due to the tense relations between Google and Chinese authorities over censorship of Google search results.

Google closed its China search engine in March but wants to keep a website that offers music and other services. Users had been automatically redirected to Google's uncensored Hong Kong site but the company stopped that last week after Chinese officials warned that the move could mean losing its license.

Talking with reporters at the annual media conference in Sun Valley, Idaho, hosted by investment bank Allen and Co, Schmidt said yesterday, "We now expect a renewal."

Google's relations with Beijing have been rocky since the US search giant said it no longer wanted to cooperate with government Internet censorship. The announcement was prompted by cyber attacks the company traced to China.

The conflict poses a balancing act for Google. The company wants to uphold the principle of free access to information.

It also wants to keep a foothold in a market that has nearly 400 million Web users, the world's biggest.