Google not being in China has been a very prominent sign that this is not normal, that the Chinese regime does not speak for the Chinese people and therefore their laws have no legitimacy at all.
Google not being in China has been an ever present pointer towards the fact that Chinese search enginges do not tell the truth.
It is also unethical because Google can now be blackmailed by the Chinese regime, which will affect Google's behaviour towards its users in the rest of the world. This isn't just an ethical concern but also a very pragmatic one.