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    Greater China
     Nov 22, 2011


Dissonance grows in US-China network
By Benjamin A Shobert

For Americans, few technologies so embody the freedoms we enjoy more than that of the Internet. A Wild West where anyone with an opinion and the most basic know-how can find a podium from which to pronounce their beliefs, the Internet in many ways not only symbolizes the proud American value of dissent, but equally captures some of the most profound differences between the United States and China.

Where in America, the Internet facilitates an existing political belief - the need for the individual to have an opinion, to vocalize it, and to have to right to do so - in China, the Internet draws a sharp focus on the limitations to how Chinese may express themselves and disagree with their government.

For Chinese, the technologies which make the modern Internet possible are equal parts blessing and curse; holding the promise

 
of freedom of expression but equally the curse of a central government empowered by technology to look into the most personal expressions of what Chinese think, feel and believe.

Laid on top of these matters is the additional problem that the Internet remains, both the hardware which makes its existence possible in the first place, as well as the software which makes its use engrossing and empowering, one of the most compelling business opportunities in China.

For American Internet companies, the need to get their products into the growing domestic Chinese market is of utmost importance.

However, the price of entry for many of these companies is to agree to terms with the Chinese government that fundamentally restrict the full empowering potential of their technology while also giving Beijing the ability to snoop into the online habits and thoughts of the Chinese people.

Can these companies simply turn their backs on the Chinese market because the agreeing to these terms would be a violation of their founding values? Or, should they agree to Beijing's terms with the belief that no government can forever walk the fine line between agreeing to the Internet's ability to connect disparate voices on commercial matters without at some point empowering these same people to ask for more from their government?

To many Internet companies who believe their technologies empower the individual, this trade would be worthwhile; however, others see China's ability to thus far use technology as a means of perpetuating its heavy-handed rule and believe they have no place helping Beijing's authoritarians continue its censorship policies.

On Thursday, the Congressional Executive Commission on China (CECC) turned its attention to what it called the ''human toll and trade impact'' of China's Internet and media censorship policies. The CECC's hearing represents an attempt by congress to point out that China's censorship practices not only represent an unacceptable value American policy makers cannot support, but that these same practices represent a challenge to the free trade policies the United States and China have agreed to.

It is an interesting commentary on the state of US-China relations that the US Congress feels its best chance to highlight the practices of China's authoritarian government is to link these habits with a loss of economic opportunities for American business.

In this vein, Senator Sherrod Brown (Democrat, Ohio), opened the hearings up by acknowledging how China's oppressive government policies were connected to the loss of economic opportunities for American Internet companies. As Brown said:
The purpose of today's hearing is to shed light on the darkness of China's repressive Internet and social media censorship. It is a policy that takes a very human toll, undermining human rights reforms and freedoms of expression and speech. And it is a policy that is unfair to US trade interests, especially for US tech companies.
Signaling a growing sensibility in the congress that relations between the two countries have been overly conciliatory towards China, Brown went on to say:
China plays by its own rules because we regrettably, in this institution and in our government, let them. We cannot simply wait out the inevitable power of the Internet to move the hearts and minds of the Chinese people. We must do all we can to shine the light where free expression, thought, and commerce are too often kept in the dark.
Brown's comments need to be understood as a challenge to the traditional policy of engagement between the United States and China.

For three decades, the prevailing view in Washington has been that as we further engaged China, they would become more like us. Commerce would become the lubricant by which the Chinese government would relinquish its control and empower the individuals and their opportunity to shape Beijing's policies. Even more so than commerce, the advent of the Internet and the dissent-shaping technologies it brought with it suggested the inevitability of China's authoritarian government finally breaking. But, this has not happened.

Republican congressman and CECC chairman Christopher Brown (Republican, New Jersey) noted that, if anything, the Chinese government has been "tightening their grip on Chinese society ... particularly over the Internet".

Instead of the Internet fostering a spirit of dissent, it appears to have provided Beijing with another tool by which they can identify dissenting voices. According to Brown, "By some accounts, China has imprisoned more Internet activists than any other country ... Chinese citizens are unable to voice criticisms that Americans take for granted every day."

Xiao Qiang, the founder and chief editor of the China news website China Digital Times and an adjunct professor of journalism at UC Berkeley, testified recently that while Beijing continues to attempt and control the Internet's ability to facilitate dissent, the unmistakable reality is that they are struggling to do so successfully.

According to Qiang: "The numbers of netizens engaged in political criticism are steadily growing and are now estimated to be between 10 and 50 million. What is it that Beijing so fears?" Qiang believes the Chinese government is afraid that the Internet sets in motion what he calls "the power of truth-telling among the Chinese population". For the Communist Party, this "directly challenges their privilege, ideological control, and the legitimacy of the regime".

Controlling content is one way Beijing attempts to maintain its legitimacy, but what Qiang pointed out in last week's hearing is that the Chinese government has become increasingly sophisticated in its strategy of limiting on-line dissent.

Now, Beijing understands that it must focus on the infrastructure - the hardware and software of the Internet - if it is going to be able to continue its practices. As Qiang said:
That's where American Internet companies enter the story. Because American Internet companies are not under the control of the government and therefore cannot be trusted to abide by the government's rules, they are most often prevented from entering the market on a level playing field, or simply blocked by the Great Firewall.
Testifying in front of the last week's CECC hearing, pastor John Zhang, a Chinese dissident long active in China's evangelical Christian community, noted that American business needed to be aware of, and act upon, the reality that their technologies are not only empowering commerce, they are also providing Beijing with the tools to suppress dissent.

Signaling out Cisco, one of the American technology companies whose systems have allowed the on-line monitoring "Golden Shield" system to be rolled out in China, Zhang stated, "Without a doubt, Cisco is responsible for the deterioration of Internet freedom in China."

American Internet systems are, in many ways, true dual-use technologies. They both empower dissent while also enabling mechanisms of control. As a consequence of this, many American firms like Cisco believe they should not be singled out given they do not control how Beijing chooses to use the technologies they purchase from them.

In addition, these same companies point out that unless American policy finds a way to address these problems, the lucrative Chinese market may be forever walled off from their businesses. Already, policies that discriminate against American Internet companies have become more common in China, which has led many policy makers to believe that the tension between political values and commercial opportunities can no longer be avoided.

This may be most notable in China's bifurcated treatment of the two social networking sites Facebook and RenRen. Gilbert Kaplan, a lawyer and partner at King & Spalding and president of the Committee to Support US Trade Laws stated in last Thursday's hearing:
China's Internet service providers have capitalized on this discriminatory treatment of US companies and have consequently experienced great success. Earlier this year, for example, RenRen (known as "China's Facebook") filed for a US public offering, symbolizing its success to date and its plans for expansion. Meanwhile, Facebook is blocked in China.
Kaplan noted that while China's practice are not necessarily new, they impact is now feared to have been so extreme that even if China were to reverse its policies, "Market share [for American businesses] can never be recovered."

In this way, China's Internet policies may constitute a World Trade Organization (WTO) violation, a line of thinking the CECC began to explore last week. According to Kaplan:
The Chinese Government's actions appear to constitute various violations of WTO agreements ... particularly the GATS [General Agreement on Trade in Services] agreement. The Chinese actions in question, although often based on unwritten policies and practices, would still constitute "measures" that can be challenged under the World Trade Organization Dispute Settlement procedures.
Ed Black, president and chief executive officer of the Computer & Communications Industry Association, testified along these lines when he said:
Since China gets full markets in sectors where competitive advantage such low-cost manufacturing it disconcerting States government not done ensure Americas companies get same liberalized access Chinese market a market which now has more Internet users than entire population of United States.
American businessmen policymakers alike understand that as Black said This is big business for America these businesses also happen be the tools that empower people to communicate assemble and organize.

The Internet brings together American commercial interests and its most cherished political values, a linkage that if China attempts to forever deny may well grow into one of the most problematic issues that drives a wedge between the two countries. In this way, while the Internet may not enable a sea change in Chinese politics, it may play an equally momentous role in changing American attitudes and politics about China.

Benjamin A Shobert is the managing director of Teleos Inc (www.teleos-inc.com), a consulting firm dedicated to helping Asian businesses bring innovative technologies into the North American market.

(Copyright 2011 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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(Oct 20, '11)

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