Google Vice President, Greater China president Kai-fu Lee, today will announce the formal resignation. Sina science and technology exclusively learned that Kai-fu Lee on the end of June had already made plans to leave; but, because Google China had to deal with a sudden urgent incident, Kai-fu Lee decided to postpone its departure.
Kaifu Lee will start up his own venture to help young entrepreneurs. And, he may announce the plan for his start-up next week.
Source: Sina
Update: according to Tencent, Liu Yun, vice president of Google worldwide will temporarily take the post of president of Google Greater China, in charge of the Chinese market.

Dr. Liu Yun joined Google last January, as a global vice president in charge of Greater China sales. Based in Beijing, he is responsible for Google sales and channel business in mainland China, Hong Kong and Taiwan.
Prior to joining Google, he served as CEO of SK Telecom and President for China market. He also used to work in FreeMarkets (US) and SingTel (Singapore) in senior management positions.
Update (via NYTimes):
Google said in a news release early Friday in Beijing that Mr. Lee, who was president of Google Greater China and vice president for engineering, would leave the company in mid-September. Two current executives will take over Mr. Lee’s engineering and sales roles. Boon-Lock Yeo, currently director of Google’s Shanghai engineering office, will take over engineering responsibilities for Google China, and John Liu, vice president of sales and operations, will assume business and operational responsibilities.
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I am very suprised at the news, really .i am a chinese netizen.
Me too. I think he had a tough time, but he did great.