It's more than that. It's not that Google China was complying with Chinese laws, but actively producing Project Dragonfly. It basically tracks each individual in the country with a smart phone or device and assigns onto you a social score that will determine your economic, social, and political prospects based upon how you behave. What the state promotes is that if you are charitable, productive, and good in other virtues, you will have a higher score. If however, you steal and slander people, you will have a low score.
It also so happens that anything that might undermine government control is also deemed as socially immoral and anything that supports and obeys the government is socially moral. China was paying google to help them produce the program to make that possible. That's not just obeying the law because you have to, it's outright aiding a tyrannical power for large piles of fucking cash.
It's not just treasonous, but goes against the very fabric of the national cultures of Yankeedom, Appalachia, the Midlands, the Far West, and arguably a good chunk of the Left Coast. Only the Deep South and Tidewater might really approve of that sort of control, but they don't want China to have that sort of tool to support themselves with. And of course the Deep South hates google for its far left support and censorship against the right.
Suffice to say, Congress is going to beat the shit out of Google. Probably after Trump cripples them economically by beating the shit out of the Chinese economy.