If Google withdraws from China, I would not regret it.
Google is one of those services that gives a damn about the privacy of its users, and it wants to know virtually everything. If they have to leave China, it may be bad for their business, and that's fine!

Surely, it has shown up to now that it doesn't give a damn about the privacy of its users!
However, it has gotten such a bad name internationally for assisting the Chinese government in censoring the net.
Another, but perhaps much more important factor in the company's eyes, that has led to the apparent, recent reversal in the company's policy re China, is the lower than anticipated profits generated by its Chinese operation.
The sooner holes appear in the great firewall of China the better. Google's youtube may once again be accessible from behind the great wall in the not too distant future. That must be more than a possiblity now.