Why are you surprised? Chinese companies steal designs and pirate US products as a matter of routine.
China needs money flowing into the country in order to sustain it's big growth rate. They've traditionally gotten it through dirt-cheap manufacturing costs and exports. Google's marketshare is small, but they're very well connected in the US and are probably the US company most likely to start a "China-free" product trend. If it takes hold, the US would get a little bit of extra leverage (something we've sorely been lacking lately)