It's much easier to force intermediary communications and Internet companies such as Google to police themselves and their users than the alternatives: sending cops after everybody who attempts a risque or politically sensitive search, getting parents and teachers to do their jobs, or chasing down the origin of every offending link.
I lived in China for 9 years straight. I saw how my Chinese friends benefited and gained much more freedom to determine the course of their lives, their jobs, their creative works, and their identities over the course of a decade. Much of this increased freedom is thanks to economic engagement by the West.
Right after September 11, 2001, there weren't really any blogs in China, but there were a lot of Chinese chatrooms - and there were a lot of conversations in which Chinese netizens were saying things like, 'served them right.' That was definitely not the official Chinese government policy - which condemned the terrorists.