There are reports from China that the government there has blocked access to both Market and Gmail on Android devices. Google has yet to comment on the service outage, and the government is not expected to as it regularly blocks access to websites without notice. According to MocoNews, access to both of the services has been intermittent in China since Sunday. A quick check of Blocked in China shows that Chinese servers are currently unable to access the Android Market website.
This possible service blockage would merely be the latest in a battle between Google and China that has spanned more than a year now. The search giant ceased operations in China and refused to censor its search results back in 2010. More recently, the government blocked access to Google+ following Google's allegations this past summer that the Chinese were responsible for hacked Gmail accounts. The highly public feud has allowed local competitors to gain a foothold in China; most notably among these competitors is Baidu and its upcoming Android-based Yi OS. It looks like the Google vs. China drama isn't over yet; we'll let you know when we hear more.