Google has officially announced their localization plan in China, which includes setting up Chinese search servers inside mainland China so that they would allow easy access for the monitoring agencies. The whole incident has been broadly publicized, but overshadowed by the Yahoo's tragedy exposure of Chinese dissidents which results in at least two cases of long term jail times.
Nothing can be perfect, as Google and Yahoo's administration put it. The only way to conduct business in China may require some extend of comprise to the authorities. However, there should always be a bottom line, one that should not be easily crossed. Alas, Yahoo crossed it. I had thought Google did not, and would not. I was wrong.
Google direct all of searches originated from mainland China to its servers in mainland server, even including pure Google English searches. As a result, even the results were re-ordered. In other words, if you reside in mainland China, two Google search at www.google.com would generate two different answers if one went through a proxy and one did not.