The Google Watchdog has an article. It says that some Chinese sites are using cloaking to invade top Google results with spam and malware at an alarming rate.

http://www.googlewatchdog.info/2007/09/spam-and-virus-sites-infesting-google.html

Slashdot has some discussion also.

http://it.slashdot.org/article.pl?sid=07/10/01/1256254