If we ignore numbers released by Chinese gov controlled organizations, which undoubtedly have never released an accurate figure where foreign companies are concerned, then Google has 25-35% of the Chinese search market.
That's absolutely huge. China has over 300 million internet users. All of North America put together has less than that.
In North America those users represent somewhere around 75% of the population, whereas in China they represent 25% or less.
We're talking about one of the largest and fastest growing (if not the fastest growing) internet markets in the world.
I don't care if you're losing money, you don't give up a one third share of ANY industry in China lightly.