Is this perhaps a misinterpretation of "within the law"?<p><i>"[...] over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all."</i><p>They talk of filtering as an all-or-nothing concept. They want to operate unfiltered search (not semi-filtered, or filtered to the extent of the law). "Within the law" refers to the fact that they want to accomplish unfiltered search in a manner that is legal and their statement is rather clear that failing that they will be shutting down.<p>You're right, though, that this being an ultimatum isn't stated in clear (binding) legalese—quintessentially their wording of "not willing to continue" instead of "will not continue". This is almost certainly intentional.<p>However, it is a press release that declares intent, generates expectations and has a common and obvious interpretation as a take-it-or-leave-it deal. From a public relations standpoint, Google would not benefit from doing something completely different.