Reports from China say a controversial government-backed software project to filter internet content could be on the brink of collapse.
State media said the developer behind the Green Dam Youth Escort software had closed its Beijing project team because of a lack of government funding.
Its partner in Henan said without funding, its team would soon close too.
China had insisted all computers be equipped with the software, but scaled back plans after censorship complaints.
No funding
The Chinese authorities announced last year that all computers sold in China would have to have the software pre-installed from 1 July 2009.
Officials said it would filter out pornographic or violent material, but critics complained that it could also be used to stop Chinese internet users searching for politically sensitive information.
Opponents also raised questions about the apparent monopoly enjoyed by the software providers.
The roll-out was delayed amid strong domestic and international opposition, and officials later said that using the software was optional.
In the end, the Green Dam software was only installed in 20 million computers in internet cafes and schools, state media said.
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