Google has decided to postpone its Nexus One launch in China, which was supposed to happen on Wednesday, agencies report. Although Google has entered talks with the Chinese government to discuss the future of their search business in China, it’s now obvious that, until the situation is resolved, other aspects of Google’s business in China will suffer, too.

Together with the news that China Unicom may be postponing all Android-based phone launches, this really shows how big the fallout from the Google-China dispute really is. It’s not only about Google’s search business in China. Google also stands behind one of the most important mobile platforms of today: Android, and cutting business ties with China would mean the demise of Android in one of the world’s biggest markets.

Google spokeswoman Marsha Wang declined to give a reason for the postponement, or a new date for the Nexus One launch.

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