Making a big deal out of hacking Google trivialises the problem. Look at this from the perspective of a corporation. Google is easily the most well resourced technology company in the world. If Google cannot stop China, what can a typical cash strapped company do? Companies can spend a lot of money to unsuccessfully stop China, but to what end?
Then consider that the losses from being hacked by China are nearly impossible to quantify for most companies. While there are some companies that can point to tangible losses, most Chinese hacking attacks have no obvious consequences for the victims. Hacking Google sounds heinous, but again the tangible effects are minimal.
Everyone is ignoring the fact that China is grabbing the US by the proverbial balls and squeezing, while they focus on an itch. So as Blair wastes his time highlighting the Google hack, he fails to remind Congress of the decade long theft of defence and other critical technologies that can be used against the US. It is also very possible given past experiences that China will potentially sell these technologies to terrorist sponsoring nations.
Security managers have to likewise ask themselves if they are focusing on nonsense while there are more obvious and critical issues to worry about. Hacks and vulnerabilities are completely irrelevant. It is the resulting, or at least potential, losses that matter. If the losses are ambiguous, irrelevant, or not even discussed, then your CEO will turn to you and say, "I don't care."