Google's undemocratic actions might signal turning point in history

This morning, Google company CEO Eric Schmidt tried to justify their cooperation with Chinese censorship laws:

"We believe that the decision that we made to follow the law in China was absolutely the right one...I think it's arrogant for us to walk into a country where we are justbeginning to operate and tell that country how to operate."

What ever happened to the ideal that American businesses were to use capitalistic means throughout the world to influence democratic reforms?  What is going on today with Google signals that this notion about capitalism and democracy might regrettably be a Cold War theme.  Since when did political theory indicate that companies using free markets would help shield unfree law in other countries?  Or, maybe it has to do with a lack of regulation on the part of the United States government -- not preventing U.S. companies from doing what Google is engaging in with the Chinese.  Quite possibly, it could be a little bit of both.  Nonetheless, Google's actions might signal a turning point.  Today, U.S. businesses are adapting to foreign governments, instead of making foreign governments adapting to free market ideals like they should.