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> I could only imagine the level of corporate espionage that is in play between China and Google.

I'm not sure these types of interactions can still be described as corporate espionage. The fact that one of these parties is a sovereign nation creates wrinkle to this whole thing. (From what I understand China doesn't directly link themselves too closely with this but no one really thinks this isn't covert stuff being directed by their government.)



It's further muddled because China is a sovereign nation with significant corporate holdings.


Governments are basically corporations with varying degrees of public ownership that have monopolies on societal goods. I would consider this corporate espionage.

The US also engages in corporate espionage through the NSA in the interest of its defense contractors. http://en.wikipedia.org/wiki/National_Security_Agency#ECHELO... (last paragraph)




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