In one of the sternest reaction to Google's threat to pull out of China over censorship of internet, China's top Internet regulator warned Google that it has to obey Chinese laws or "pay the consequences."

"The company will have to bear the related results" if rules are violated, said Li Yizhong, minister of industry and IT.

Yizhong's statement come after Google's CEO, Eric Schmidt, said that "something will happen soon" in the two-month long standoff over the issue of filtering content, between the company and the Chinese government.

The feud began in January, when Google said it would stop filtering search results in China after its computers were targeted by "highly sophisticated" attacks.

Google on the other hand is also adamant and could stop censoring its Web-search results in China within weeks, in a patchwork agreement, said people familiar with the matter, but won't leave the country entirely.