Google certainly doesn't need China, but it wants it. It's a heckuva lot easier to do business and make money in a country, when you're chummy with the people in charge. Even if it goes against your ideals, free speech, or public interest.
Even if Google dies, its replacement will still be equally tempted to censor dissenting voices, in order to please the people in charge.
I understand where you are coming from here, I see it a bit differently. But I recognize that I see it differently because I have a weirdly particular definition of the word 'need.'
I have come to define the magnitude of need to represent how far out of your internal value system and the law are you willing to ago to satisfy a "need." I'm not sure what the units are, desperation perhaps.
For example, I "need" to eat to live but at the present time my need is modest because I have enough money to buy food to eat. At my current level I wouldn't steal food (go outside the law), or misrepresent my state of poverty to a food bank (go outside my internal values) in order to acquire food. So the magnitude of that need is "small."
However, if I was unemployed, out of savings, and behind on my bills, the calculus changes. I really need to eat, and in that situation might do things I would not normally do (like rummage around in trash cans for discarded food).
It is clear to me that Google, like every company, needs revenue in order to survive. The stronger the need for that revenue, the more willing they become to compromise the user experience, the law, and/or their internal values.
To me, their actions of the last few years appear to directly contradict what at one time were core internal values. Whether its the level of monetization of their own properties, or their willingness to cooperate with an authoritarian state to keep information away from their population. I see their taking of these steps as an outcome of their great need for revenue.
China is the second largest economy on the planet, and Google does not appear to be willing to hold true to their values and forego the revenue that economy could potentially produce for them. That is the reasoning by which I come to the conclusion that Google needs China.
Even if Google dies, its replacement will still be equally tempted to censor dissenting voices, in order to please the people in charge.