According to the report, this is to sell mobile services into China, but, of course, it may mean also opening the door again for other Google services, assuming compliance with the Chines regulators.
That will be a big story if it comes true. Right now everyone is quoting this same article, most of which is behind a paywall. There are the obvious benefits and pitfalls for Google with a move back to China. This will be a fun one to watch.