China has retreated from its Wednesday deadline for computer makers to pre-install controversial internet filtering software Green Dam Youth Escort, following objections. There have been objections from inside and outside the country.

The delay in installing the Green Dam Youth Escort software will give computer makers more time to comply with the new requirement, the Ministry of Industry and Information Technology said in a statement. The ministry said it will continue to provide free downloads of Green Dam and install it on more computers at schools and internet cafes.

The pre-installation of Green Dam is "not compulsory" since the software can easily be disabled or uninstalled by computer users, the ministry said.

The delay is in the wake an objection among China's estimated 300 million internet users and reports that security holes in the system could allow remote monitoring and control of users' computers, and the theft of personal information.

The American Chamber of Commerce (AmCham) in China welcomed the delay as a "positive step forward".

Lu Benfu, the director of the Internet Development Research Centre under the Chinese Academy of Social Sciences said he saw three reasons behind the decision to delay introduction of the software: the need to resolve technical problems, lack of transparency in the bidding process for the software development, and the concerns of Internet users over privacy and legal rights.

The government said Green Dam is needed to filter out pornographic content, but it is apparently also designed to combine existing blocks on politically sensitive websites.