Local media report that Google (GOOG) China will make a major adjustment on its regional functions and move its marketing headquarters and client service department from Beijing to Shanghai and its engineering institute from Shanghai to Beijing.

After the adjustment, Beijing will be the R&D center for Google instead of its sole headquarters, and Shanghai will be Google's advertising center for China. The report says that Google's new office in Shanghai will be located at Raffles Square and Google will move into the new office in July.

Google is reportedly moving its marketing and client service department to Shanghai mainly to avoid direct contact with its competitor Baidu.com which is located in Beijing and has not much strength in southern China.

Wang Jinhong, public relations manager from Google, has denied this rumor.