By now you will have read many articles derived from the statements made by David Drummond, SVP, Corporate Development and Chief Legal Officer at Google about China.
The primary issue that Google was bringing up was a simple and not politically hot one. Companies need to know that the government of countries they are trying to do business in will have laws and enforce them against those who attack the physical or virtual infrastructure of these businesses.
Many of the comments and articles about this incident suggested Google was trying to protect online free speech. I do not buy that argument in this case.