According to experts, the proposed partnership of Google Inc and NetEase Inc is likely to help the former gain a much-coveted toehold in China.
According to The Information, a U.S. news portal, the U.S. tech giant is in talks with China's local Internet behemoth to bring its Google Play mobile app store to the Chinese mainland. NetEase Inc is China's second-largest online games provider.
Both Google and NetEase declined to respond to requests for comments amid the rumors that Google may be mulling a comeback in the largest mobile Internet market in the world.
"Forming a partnership with local players could help Google get a green light from the Chinese government," said Sandy Shen, a Beijing-based research director at Gartner Inc, a technology consultancy firm.
The Cyberspace Administration of China, the country's top Internet authority, just issued a new regulation last month. The regulation will require app store operators to register with China's local government before rolling out their services.
Sandy added: "That's perhaps why Google is reportedly considering a joint venture. NetEase can offer lots of help in government relations."
Google Inc has withdrawn most of its businesses from China in 2010. The absence of the Google Play Store and the Apple App Store encouraged handset vendors as well as local Internet giants to develop and offer their own versions of a mobile application marketplace.
Wang Xiaofeng, a senior analyst at Forrester Research Inc, said that Chinese users would welcome a relaunch of Google Play because the app store application still has a strong reputation in the country.
"Google Play has a bunch of new features that local products lack. The digital assistant Google Now, for instance, is likely to lure Chinese consumers and help erode the presence of local players," Wang said.
According to Annie, a mobile application tracker, Chinese consumers spent approximately $1.7 billion at Apple's iOS mobile app store. This is five times higher compared to what consumers spent two years ago.