Beijing has stepped back from attempts to force the installation of a filtering software on all personal computers produced or sold in China, finally defusing a controversy that caused uproar in the industry and threatened to spark friction over trade with the country.

The government will continue to install Green Dam/Youth Escort, a program developed at Beijing's behest by two domestic software makers, on PCs in schools, internet cafés and other public spaces, said Li Yizhong, minister for industry and information technology.

“With regard to the general consumer, we will fully respect everyone's freedom of choice and will absolutely not force the installation on all PCs sold,” Mr Li said. The remarks follow an earlier, but still ambiguous, climbdown by Mr Li's ministry.