The whole story is based on the word of Damballa, Inc. who has a vested interest in pushing this story out to the media. Strike one.

Secondly, Google specifically denies Damballa having any first-hand knowledge of the attacks or the resulting investigation. Strike two.

Third, Damballa's conclusions are completely unfounded. The fact that the attacks were 'unsophisticated' in nature doesn't exonerate the Chinese government. In fact, it seems quite in character. Strike three.

Until Damballa or Google publishes something more conclusive, I think we can safely ignore this story. As it stands, this smells like a grab for media attention by a new security vendor.