Google was granted a new license to Operate in China. The renewal was not sure, since Google opposes Chinas strict internet sensor chip.
According to the new licence, Google can operate in China till 2012 and will have to apply for a renewal annually.
China threatened Google to refuse a new license if they did not comply with their regulations, and if they kept redirecting their visitors directly to Google in Hong Kong.
Google has complied so far and does not redirect their visitors directly to Hong Kong. Instead their visitors will be greeted with a webpage made up basically of one picture, one big link to google.com.hk and four smaller links below that. If you click on the search box which just is a picture, you'll be brought to google.com.hk .