According to this article Mcafee (anti virus firm) has informed the pubic that hackers seeking source code from Google, Adobe, and dozens of other companies used unique and highly complicated methods, along with the use of an unknown hole in Internet Explorer to attack online. McAfee has never seen anything like this type of hacking outside of the defense industry. This attack has companies online on high alert. Google reported on Tuesday that hackers stole intellectual property and accessed human rights activist’s e-mails. McAfee also added that this highly sophisticated and well-organized attack has changed "the threat model" and the company is coming together to prevent this from happening in the future. The attack is said to have originated in China.

http://www.wired.com/threatlevel/2010/01/operation-aurora

In the past, Google has received criticism for its willingness to censor search results in China in order to appease the Chinese government. It claimed that its participation, although censored, would provide benefits to the Chinese people through the use of its search services.

On January 12, 2010, Google has announced that it will no longer censor its searches in China. Google cites a series of cyber attacks that attempted to gather information on Chinese human rights activists. These attacks targeted at least 20 different companies.

In Google's blog, they stated that they were concerned with the implications of human rights and freedom of speech in China. A remarkably bold move, and one that the Chinese government most likely will not like.

The die has been cast. Google is no longer willing to censor their results in China and they have stated that they will exit the country if China will not allow them to operate as such. The company realizes that this may be the end of their operations in China. The impact of an exit would be significant as Google holds a 30% market share in China--Baidu holds 62%.

Let it be noted that Google is willing to take a hit in their business operations in order to follow what they believe is ethical.

Main story here at the Guardian.uk