Talks between Google and the Chinese government have stalled, according to the Financial Times, which means that that the search engine is preparing for a complete shutdown of its operations in that country.

The Financial Times reports that China’s public position on the Google issue has also hardened, issuing "a warning that it was not prepared to compromise on internet censorship to stop Google leaving," late last week. Experts have speculated as to whether the company will be able to maintain non-search operations in the company, with some saying that official interference could make that difficult. The paper says that Google has rejected many proposals from the government, including the idea of handing majority control over to a Chinese company.

Search engine optimization (SEO) in the Chinese market is likely to be heavily affected by Google’s departure, as local favorite Baidu solidifies its already-dominant position.

Search Engine Land reports that, despite the pending closure of Google.cn, the shutdown itself would take some time to accomplish. The search blog also says that other Google activities in China, like research and Android-powered cell phones, would remain.