China and Google’s relationship has been on the ropes since Google uncovered a Chinese hacking initiative that sought emails of Chinese dissidents, and it seems Motorola is expecting the worst. Motorola has announced that it will offer the Baidu search engine as an alternative to the default Google search engine on Android-powered Motorola smartphones in China. Baidu is China’s largest search engine, and Google’s top rival in the Chinese market. The move will give Motorola a viable search alternative for its Android phones, should Google decide to completely pull out of the China.

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The Google Phone may be a data only, VoIP driven device. And Google may be lining up at least AT&T to provide those data services for the Google Phone, says one person we spoke with today.

Users could still make calls just like a normal phone, of course. The calls would just be over the data service instead. In fact, this is the exact vision Google proposed back in 2007 when they were bidding on the FCC auctions for the 700MHz spectrum.

Google can even issue phone numbers to users via Google Voice. In fact, I’ve already ported my mobile number to Google Voice, and Google has plans to roll out that feature more broadly. Google Voice can also handle the VoIP function for the phone.