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ReutersReuters reported that China sought to play down a threat by Google Inc. to quit the country on hacking and censorship concerns, saying any decision by the Company would not affect U.S. trade ties. The United States said it was too soon to tell how economic ties would be affected, but added free information flow was crucial to China's maturing economy. A spokesman for China's Commerce Ministry said there were many ways to resolve the Google issue, but repeated that all foreign companies, Google included, must abide by Chinese laws. The United States has backed Google's decision to no longer support China's censoring of internet searches, and has raised the issue at a diplomatic level.
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EDIT: I bet the China complained to the US saying Google was breaking their laws (uncensored results) and the US told them to fuck off.