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Totalitarian government cannot afford to be defied. Google either submits to the Governments policies or leaves. By the way they would have to do the same if they were in a dispute with the US, only here they only have to follow the constitution and clearly written laws. In China you have to follow whatever is the latest demands of the government or else. As soon as Google defied China in public it was over. It is basically illegal to have secrets hidden from the Government in China, and that is what Google was trying to do.
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