Google is stuck. As you may know, there are all kinds of domain endings like .com, .biz, and .net because so many people are trying to get a specific domain name. For this reason, many different extensions have come into being.
Google is caught because they’re supporting the Chinese position that they can ban these domains if they so please. Since Google is a big provider of these domain names, they’re supporting the Chinese in not allowing certain ones to be bought.
For perspective, China is a big believer that the state should censor certain messages, but the internet has always been one of the freest places on earth. Since they have a population of over a billion people, and since they’re an economic powerhouse, China can force Google’s hand in this a little bit.
Furthermore, most of the startups of today are driven by outside investors, and if a startup isn’t keeping their investors happy, funding can be withdrawn. China invests in many American startups, so they can choose to control how those companies function.
And to come full-circle, the Chinese are getting their money from Americans who purchase imported products from China.
On a broader level, there are countries and people who are trying to censor the internet every day. It’s in our best interests to squash these attempts so the internet can stay a safe place for all kinds of information and ideas to be shared with the public.