I was wondering if the real problem wasn't that Google discovered the attack vectors were essentially government-mandated holes.<p>That is, the required local hires, the mandatory native firm partner, etc, It could be that the rules don't allow enough control over those resources to achieve acceptable risk.<p>If that's the case, it makes perfect sense that Google would issue a public threat to close the office.  Nothing else would carry as much weight and if the current terms are untenable, there's essentially no risk.