How Google uses its power to do this?
1. Web browsers such as Firefox have built in web site block lists, and this list is automatically updated every 30 minutes. Details are here:
http://www.mozilla.com/en-US/firefox/phishing-protection/
2. This blocked list is downloaded from Google. Here's a related link: http://code.google.com/p/google-safe-browsing/wiki/Protocolv2Spec. However, this link only gives info on how to get the blocked list, but it doesn't say what criteria are used to add a site into this blocked list.
3. It becomes Google's monopoly power to decide which site is an "attacking or malicious web site." In this case, www.index-china.com is added into its blocked list.
4. Although this warning can be turned off by going to preferences -> security and unchecking "block reported attack sites" and "block reported web forgeries," many users don't know this, and they simply think what they see--a potential attacking site--is true.
5. To imagine what other sites have been added into its blocked web sites by Google. This should cause many people to be alert about Google. It is not clear at this time if there are any American domestic sites that have been added into Google's blocked list by this fashion.
A related post is http://web.wenxuecity.com/BBSView.php?SubID=currentevent&MsgID=332287.