Currently, Google cites the hacking of various gmail accounts of Chinese Political Dissidents, but it is unclear what else Chinese Hackers may have stolen with the declaration of intellectual property theft. Obviously it must have been something big for Google to threaten to leave the fastest growing economy in the world. It must have been something to threaten Google's global operations. Speculation may lead some to think that China may have accessed Google's algorithm, or some of Googles up and coming innovative technologies. Whatever it was, it must be worth severing further business with China.
Many companies and governments are now waiting to see what happens next. Some of these spectators are supporting Google and are showing their support against nation sponsored cyber attacks. Although it has been alleged that China has been in the business of state sponsored cyber theft for a long time, it could just be that this time, they went too far and attacked a company large enough to stand up to them. It is unclear what kind of fallout may follow, but one thing for sure, China's unchecked internet abuse will not continue without watchful eyes on the look out.
The future of the internet in China is unclear, their communist government discourages free thought and independence, but these are the building blocks upon which innovation is fostered. Without innovation, China will never meet their goals of being a cultural, political, and military leaders. All of which can explain China's relentless efforts of online theft. They have to resort to stealing ideas because their government discourages new ideas from emerging.