Google is taking an aggressive approach to censorship in China and threatening to walkaway from the country altogether if the government refuses to discuss the topic seriously with the search giant. Analysts are concerned about the situation for obvious reasons. China is a significant market for Google with 360 million Internet users to go after and a $1 billion search market it shares with Baidu. Presently, Google is threatening to leave the search business completely.

Despite the concern over Google’s search business, Android is the up and coming product that could prove to be a success for Google in the Chinese market considering its open source nature. However, Android is at risk as well, if Google can’t integrate its Web services into the OS. That takes away the seamless integration of Web services that company prides itself on.

For now, the negotiations are tough, but industry analysts say Google and China both need each other. Google for corporate purposes and China to present itself in positive light to make sure other US companies continue to stay in the country.