Within perhaps a generation, China will become the world's largest economy. And if China gains some small part of its growth because it successfully from U.S. firms, it would likely be seen as a cost of doing business there.

Western powers didn't expand their territories years ago by politely asking native people for their lands -- most took whatever they needed. China will do the same, but instead of going after territory, China, in this new era, is going after intellectual property and trade secrets from companies that fail to defend what they have.

U.S. companies did not line up this week to back Google's position or express much alarm over the security issues in that country. Indeed, TechAmerica, the nation's largest technology industry group, whose members, collectively, have a massive presence in China, sent out a tepid response to Google's announcement.

The industry group's president, Phillip Bond, a former undersecretary in the U.S. Department of Commerce, said in a statement that "reports of cyberattacks from China are not news to the cybersecurity community. Cybersecurity risks emanating from China are ongoing and are very real for all of us."

TechAmerica is concerned about the security issues and will raise them as part of their policy recommendations to the incoming White House cyber security coordinator, he added.