The license from China's Ministry of Information and Industry will potentially allow Google to offer news to Internet users in China, and may ultimately help to increase advertising revenues, according to an analysis from Reuters.

Google China will help speed up Internet development by installing more servers across the country, said Dr. Kai-Fu Lee, president of Google China.

Google's competitor, and also the Web search market leader in China, www.Baidu.com, received its license at the beginning of this year.