While China doesn't have the benefit of Google in the short term, by blocking them it gives it a chance for local companies to develop the technology and catch up.
Also take the example of TOMs shoes giving away free shoes replacing local markets and producers. These poor countries of weak governments, and even a small foreign company can impact the local the economy in uncertain ways. http://www.economist.com/blogs/freeexchange/2014/10/economic...
If you can understand this you can understand the viewpoint of Chinese officials. We come in with the viewpoint of "how can I have my fair and equal opportunity to extract wealth from China" while the capitalists in China are thinking "how can I extract wealth from China and prevent the foreigners from doing so." In reality the playing field isn't level. Our counterparts in China don't have the same education, quality of life, and financial status. Therefore a foreign company with foreign talent would already enter the market with an upper hand. By the time local companies are ready, they'd be fighting an uphill battle against foreign incumbents, or worse yet, not develop at all.
If you're familiar with Star Trek, there's the concept of the Prime Directive. It's principle is that the developed races must never contact or interfere with an undeveloped race because doing so would alter their natural development.
Foreign companies don't have an inherent right to the Chinese market. If they feel they do, or want to enter, it's because they feel there is profit in it. The profit comes from exploiting the opportunity in the local market, and in an underdeveloped market such opportunities are ripe. This isn't exactly fair if mature companies are allowed unfettered access.