Most people are comparing this story to Apple's behavior in China. Google doesn't operate any substantial services in China due to data privacy concerns iirc.
These decisions always boil down to business, even if there's some philosophical disagreements as a part of the broader context. Google pushed back against the CCP, but ended up following the law to the minimum extent they had to. It wasn't until the Chinese military hacked Google and stole their IP that they threatened to leave the market. Regulators called their bluff as they started blocking Google services in China. When they pulled out, it was clear they weren't going to be able to operate a profitable business there.
> 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.
