Kai-Fu Lee joined the company back in 2004, when Google was beginning its adventure in earnest and became the giant's President of Google Greater China and vice president for engineering. Unfortunately, mean old Microsoft reared its head and sued Google, for Lee was bound by a pesky "no competition" contract clause. The companies eventually settled, and Google hoped to go full speed ahead into uncharted territories. China's government, however, had other plans, and soon lured the company into its controversial web of censorship and, to add insult to injury, favored competitor, Baidu.

Despite the uphill battle, Google has made a few strides in recent months and gained 6 percent on Baidu. But that means little, because Baidu still controls about 62% of search traffic, while Google has a scant 21%.

Now Lee has abandoned his post to pursue some hush-hush "new venture" in Beijing, and Google's attempting trying desperately to refocus its energies by splitting his duties between two executives while simultaneously double its sales force. After five years struggling to be the big wig, you would think Google would give up on imposing its capitalist ideals amidst an aggressive communist state. But that's the magic of the internet: it's a field of ambitious dreams rife with international and political barriers.

Famed Vic G. el google goneo.

It's the calm before the storm. That's dead obvious.

Vic's following Ted Hase, Martin Taylor and Mark Zbikowski. Weird ones there.

And it's been way more than just natural-selection to-and-fro, it's been key people in key positions, I mean, this just adds to all the Kai-Fu Lee, Mark Lucovsky, Adam Bosworths turmoil. Breeding ground for conspiracy theories, but you need not go crazy conspiracy. Just look around at normal happenings...

After the jump, Chris gets insidery.

Another shake-up looming with a rumored heavy RIF, with the WinFS fallout, the Warhol "warporware" and the WGA chaos, with morale low and new stack rank chaos, and Vista slips (with Philip Su telling all), with Dynamics not quite so dynamic, with the stock in a two year hibernation thanks to Gates's long-term pull-out, with the political back-stabbing games anew, with everyone (even Grandma investors) unhappy with Ballmer's leadership or "spend strategy." All the while, Ray Ozzie is dazzled by Web 2.0 pixie-dust and "Web Advertising" revenues, with Craig Mundie playing academia chess-game tiddlywinks.

With Adobe, Symtantec, EU and pretty soon half the world sending more lawyers in. (Bought their way out of the lawsuit hole, only to fall back in). And now with the Walmartty Kevin Turner spit and shine. Office reorg's still sinking in, with all other groups merely treading water. With the chief "blogger" that anyone actually reads being the anonymous Mini-Microsoft. All while Key Evangelists short-sell before the crash.

These tea leaves aren't much hard to read.

Even if you, like me, have no idea what WGA and "heavy RIF" are, hopefully Chris was still able to stir up some vague fear in your heart. [UPDATE: Chris explains some acronyms:]

RIF = Reduction in Force. Meaning, yes, Microsoft layoffs. Gates is no longer the protector for money-losing rat-holes. Mundie and Ozzie Ax of sorts. I hear 7,000 is the target. Mini-Microsoft may get his wish. Yet Ballmer's preaching a hire pitch, so layoffs while hires. Typical. Foot on brake and gas at same time.

WGA = Microsoft anti-piracy thing that morphed spyware. Biggggggggg fallout as it mistakenly reported a big swash of Procter & Gamble clients as being pirated. And some row with the Air Force as it did the same thing there, and they are freaking over the report back procedure something. Supposed to be blanked out for corporate keys, but individuals installed it themselves and it all invaded the network; havoc is an understatement. The inside scoop.

Earlier: Quick, let's make chair-throwing jokes [Valleywag]