Regardless how fast and aesthetically appealling a Chinese government run or endorsed google clone is, the value from Google to the typical user is more than just search (email, docs, etc.).

Many global users trust Google today. Even if every Chinese citizen trusts this google clone, the clone would still fail as it can never have a global trust under the present Chinese government policies.

Even worse is that Google probably fears their technology will fall in the hands of the Chinese who will just build an alternative google *exacly* as they like it, and not like before with 'cooperation' from google.

The Google brand is worth something to both Google and its users. I think any Google-like operation "in the hands fo the Chinese" would struggle to build that kind of trust with its users. How comfortable would people be sending private emails to someone@china-run-google-clone.cn or watching videos on china-is-watching-you-youtube.cn?

Under what legal theory?