Looks like the 80 crore internet users in China is too lucrative for Google to miss. It could be that they don't want Baidu to come into other markets and take on China. Baidu is a Chinese search engine which goes with Chinese laws of censoring. What is the called the Great Firewall keeps a lock on what users in China gets to see. Google wants to enter back into China under its Dragonfly project. The current stand of Google allows Chinese government to censor what users see.
A lot of Google employees and supporters see this as Google deviating from its core values and principle of free and equality. Some employees resigned, some are raising voices internally and some are going public as well.
I think Google will go back to China. Chinese market has a lot of potential. Both financially as well a strategically.