In a tense post over at the Official Google blog, Google's Chief Legal Officer David Drummond discusses recent cyber attacks made against Google in attempts to retrieve information about Chinese human rights activists. While Drummond says the attack was unlikely successful, it's changed Google's approach to China going forward:
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 recognise that this may well mean having to shut down Google.cn, and potentially our offices in China.
A new approach to China [Official Google Blog]