The Google vs. China story in a nutshell and a nice video!
China's communist leadership restricts Internet content and political speech, so Google had to agree to censor some of its Internet search results in order to do business in China.Google made $300 million in China last year alone, according to CNNMoney.
Google said it would stop filtering search results in China. It accomplished this with a logistical change: Search results from mainland China now are directed to Google.hk, a Hong Kong site that isn't filtered, instead of Google.cn.Google says Chinese hackers tapped into the Gmail accounts of Chinese human rights activists and conducted a "highly sophisticated and targeted attack on our corporate infrastructure
These attacks and the surveillance they have uncovered - combined with the attempts over the past year to further limit free speech on the web - have led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.