That is the steepest drop since May 18, when the company announced chief operating officer Lu Qi has stepped down from management. They asked not to be identified discussing private plans.
Only about a hundred odd employees within Google know about the existence of Project Dragonfly.
Rubio was referring to Google's recent declaration that it would never build artificial-intelligence tools for weapons or programs that could cause harm.
Google's Android already has the largest market share of any operating system in China, now accounting for roughly 51 percent of all devices.
Indeed, only approved content is allowed behind the so called "Great Firewall" of China for its 650 million Internet users. That's hard for a for-profit corporation to resist. If Google launches a search service in China, it's on the government's terms. "Not being in China is a huge strategic miscalculation".
The project codenamed Dragonfly is claimed to have been underway since early previous year, with acceleration seen during the last couple of months, courtesy high-level meetings between Sundar Pichai and "a top Chinese government official".
"It is also preparing a mobile app for Internet search in China that will comply with local censorship laws, an effort first reported by The Intercept", the report added.
Google said in response to a request for comment that it doesn't "comment on speculation about future plans".
"We provide a number of mobile apps in China". Facebook and Twitter are blocked outright. Baidu shares fell 7.7% on Wednesday, despite posting better than expected quarterly results. It has reportedly been demonstrated to the Chinese authorities and might see a commercial launch within the next six to nine months.
Last month, the senator criticized US airlines for acquiescing to the Chinese government's demands that they remove references to Taiwan from their websites.
Pichai, Google's CEO, has met with numerous high ranking officials of China's Communist party, including President Xi Jinping's top foreign policy adviser, Wang Huning.
Google may be changing its tune when it comes to the largest single market for internet users. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.
The Intercept revealed some details about how the app might work.
The new app will block illicit sites and search queries with the former simply not showing in search results while search queries using illicit terms will simply deliver a "no results found" message. In some cases, the user will only get a blank page. "I am a bit surprised but it's indicative of how much sway the China market now has".