Because it looks like the attack is a government-based attack. As presented in the media, IP theft is par-for-the-course in China, but the only benefactors from reading the personal information of activists are those in the government, or those with strong government ties. This wasn't just a mere theft of intellectual property, this was a case of biting the hand that feeds China.
China needs money flowing into the country in order to sustain it's big growth rate. They've traditionally gotten it through dirt-cheap manufacturing costs and exports. Google's marketshare is small, but they're very well connected in the US and are probably the US company most likely to start a "China-free" product trend. If it takes hold, the US would get a little bit of extra leverage (something we've sorely been lacking lately)
"I'm disgusted by the levels to which the Chinese Government can stoop."
Half of the surprise I received reading this article was my shock that the Chinese government would attack profitable companies like Google. Sure, they've always attacked foreign governments, but China's government depends on US companies spending Dollars overseas. Since consumer spending is down in USA, it only seems natural for China to start banking on the successful industries of today, like internet advertising. Is the political danger of human rights activists really worth more than the money that Google brings? Or were their egos so high that they thought they could get away with it, either by avoiding detection or keeping Google at status quo
Maybe the Chinese government + military is just too huge to get everyone to toe the party line.
China needs money flowing into the country in order to sustain it's big growth rate. They've traditionally gotten it through dirt-cheap manufacturing costs and exports. Google's marketshare is small, but they're very well connected in the US and are probably the US company most likely to start a "China-free" product trend. If it takes hold, the US would get a little bit of extra leverage (something we've sorely been lacking lately)