RE: Will the Google | China relationship change overtime
I don't think anything is going to improve for the better anytime soon, sad to say.
It's very annoying all round. It makes buying Android devices a bit trickier. Now I always ensure I get the non-Chinese version when I do, after buying the Chinese version of my Asus Transformer and discovering it lacked the Google Play store. I eventually hacked the device, but it was a real pain.
Recently I bought a Samsung Note II (Really good device) for both myself and the wife. However, she wanted the dual sim one, and the only version available was the Chinese one. As she was Chinese, and I could work around the limitations of the lack of Google Play store, we bought it. Mine is the European version.
After playing we discovered mine had several features that the Chinese version doesn't! (For example voice entry - when taking a picture with my camera I can say 'shoot' and it takes a picture, no such feature on hers).
It just adds that little extra frustration.