"After Google's decision to reroute Chinese search requests though its uncensored Hong Kong site, it appears that China began filtering the Hong Kong search results, though it stopped short of blocking the results altogether. Among other signs of escalation yesterday, China Unicom (CHU) pulled the plug on an upcoming Android smartphone, and China Mobile (CHL) is expected to back out of a deal that would have put Google search on its home page."
also see: Google and China: What You Need to Know – GigaOM