But now that there's an obvious business reason *not* to operate in China (the threat of being hacked by individuals whose actions may or may not have been sanctioned by the government), Larry and Sergei find themselves in the position to steer Google, the organization, in a different direction.
This is one argument I've never understood - it's not like Chinese government could only hack into companies with physical presence in China. If it's about hacking - pulling out of China won't help Google in any way. If it's about censorship - yeah, really, it wasn't a problem for more than five years, but now it suddenly is ?!? If it's about finding a nice excuse to leave Chinese market after getting beaten by Baidu - well, that at least is plausible.
How are you going to make it expensive to do something illegal? Are you going to pass a law?
Increase the risk of getting caught for doing something illegal. In this particular case - pass a law stating that every illegal immigrant who reports his employer gets a 5 years of compensation (funded from fines payed by employer) and a fast-track to legal immigration.
Make headway at work. Continue to let things deteriorate at home.