In a story called "Google steps up fight for the China market", Reuters says that "Web services leader Google Inc. has won a license to operate in China" (emphasis added).

A little further on, the article quotes a statement from Google sent to Reuters:

As part of our studying and learning about this market, we have obtained a license for a rep office, but have no employees in China at this time.

As you will know if you have spent even a week in China doing business, a rep office license specifically forbids a company from doing business in RMB. In other words, you cannot operate in China with a rep office, unless the word "operate" simply means have an office, hire a few employees and spend money.

Another thing: the Shanghai bureau of Interfax published the same story on April 27, although without the quotes from Google's press release.

Someone's asleep at Reuters.

LINK:
Reuters: Google steps up fight for the China market
Interfax: http://www.interfax.cn/showfeature.asp?aid=1442