As you might have heard, last week Google threatened to pull out of China. The news spread like a virus online and had a lot of people talking in China and around the world. The information first appeared on Google’s official blog in “A new approach to China”, posted by David Drummond, SVP, Corporate Development and Chief Legal Officer of Google. The same day, the indices of GOOG went down by 1.3%. Rather than debate whether a retreat from China would be a good or bad move for Google, we would like to discuss the effect it could have on Google’s portfolio, partners, users, and competitors.

The mobile phone market is about to see a new entrant heating up the scene a little more: the Google G1, presented yesterday in New York by Sergey Brin and Lerry Page and ready to go on the market already by next month.

G1 will be the first mobile device carrying Google’s mobile software and is reportedly looking similar to Apple IPhone, with a large touch screen but a somehow less appealing design.

Google, the strongest brand worldwide, but still second search engine in China after Baidu, has decided to bring it on against the Chinese competitor by launching a new China based music search service that enables users to download music legally.