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    China Business
     Feb 14, 2006
China flap turns up heat on US tech giants
By Kent Ewing

HONG KONG - Internet giants Microsoft, Yahoo, Google and Cisco Systems are bracing for a severe tongue-lashing when a US House of Representatives subcommittee on global human rights convenes on Wednesday.

The stakes are high: the companies involved are the crown jewels of the US high-technology industry, and the outcome of the



brewing controversy over their alleged acquiescence to Chinese government human-rights violations could substantially affect the future of their businesses in that country - universally acknowledged to be a crucial market.

Politicians and human-rights activists promise to pull no punches over what they characterize as the dubious ethics of agreements the US-based companies have struck with the Chinese government. In a nutshell, the companies have vowed to adhere to what Westerners generally regard as repressive Chinese laws on censorship as well as - at least in Yahoo's case - aiding Chinese authorities in what would clearly be considered unacceptable violations of the right to privacy in the United States. All this comes, however, in exchange for entry into the fastest-growing Internet market on the planet.

There have been some signs in recent days that the protests against the tech companies' activities may be gaining traction. On Sunday, US Congressman Chris Smith was reportedly drafting a bill that would force US Internet firms to locate computer servers outside of China and other nations deemed repressive to human rights. If this should become law, it would have a major impact on search-engine businesses such as Google and Yahoo, because it could make their search engines unusably slow inside China. Google has already reported that its main search engine is down about 10% of the time in China and slow even when it is working - problems the company attributes to its servers being located outside China.

With access to 110 million Internet users - second only to the US - at stake in China, kowtowing to the country's leaders makes perfect business sense. But it has also raised some free-speech and human-rights questions that company executives will no doubt be forced to field at Wednesday's hearings on Capitol Hill. How far are tech firms willing to go to please Chinese authorities? And, of course, how far do those authorities plan to take them?

Up to this point, the tech firms have defended themselves by stating that they, like any foreign enterprise in any field, are obliged to follow Chinese laws while operating in China. It is, however, exactly this adherence to the law that has generated such controversy in the West.

At Wednesday's hearings, for example, Yahoo representatives might be asked about the case of Shi Tao, a Chinese journalist who has been jailed for 10 years after the company helped police trace e-mails he had sent to human-rights organizations overseas, deemed seditious by the Chinese government.

And Microsoft executives may be obliged to explain why several weeks ago, at Beijing's request, the company closed down the popular online journal of blogger Zhao Jing, who also works as a research assistant in the Beijing bureau of the New York Times. Committee members may also want to know why, last year, Microsoft launched an MSN portal that blocks the use of the words "freedom" and "democracy" in the names of blogs. On Google's China search engine, www.google.cn, the word "democracy" is also a no-no, as are any mention of Taiwanese or Tibetan independence, the 1989 Tiananmen crackdown or the banned Falungong spiritual movement, regarded as a cult by Beijing.

Is the recurrent reply to all these developments - "But it's the law" - an adequate one? Increasingly, it seems, the tech firms themselves realize the answer is no. On Wednesday, we should expect a more robust defense. Indeed, that defense has already begun to take shape and, despite the rage of activists and certain members of the US Congress, it has considerable substance, especially here in Asia.

Bill Gates himself weighed in recently at a Microsoft-sponsored conference in Lisbon on the use of Internet technology in the public sector, arguing that it is better for Microsoft to be present rather than absent in such markets as China, even if restricted. And, the Microsoft chief added, government censorship of the Internet is an illusory goal at best. "You may be able to take a very visible website and say that something shouldn't be there," he said, "but if there's a desire by the population to know something, it's going to get out."

Following up on its chairman's remarks in Portugal, Microsoft announced new company guidelines on how it will deal with demands for government censorship in China or anywhere else. Under the new policy, the company will only block content on its MSN Spaces if served formal notice by a government that the content is in violation of the law, or if it transgresses MSN's terms of use. And, from now on, Microsoft will notify users whose blogs have been shut down; in the past, the unlucky bloggers were surprised by a unexplained dead link. In addition, the company is working on technology that will allow content blocked by censorship laws in one country to be seen by the rest of the world.

As for Google - the company with the "do no evil" motto - the firm can piggyback on Gates' argument and claim that the complete absence of its service in China would represent a greater evil than its fettered presence. For now, the China Google search engine sends an explanatory message to any user whose quest for information has been filtered. In the future, the company hopes, domestic and international demand will lead to fewer and fewer such messages. In the meantime, uncertainty over the future of the company's China venture has arguably contributed to a recent decline in its stock price: Google has tumbled 25% compared with a month ago, and some analysts are predicting a further 50% decline.

On Wednesday, the US Big Four - Microsoft, Yahoo, Google and Cisco, which supplied the Chinese government with switching equipment that is a great help to its Web monitoring and filtering system - plan to present a united front. Microsoft and Yahoo, in an attempt to transfer the ball to Washington's court, have already teamed up to issue a joint statement calling on the US government to take steps to persuade Beijing to stop censoring the Internet.

"We urge the United States government to take a leadership role in this regard," the statement said, "and have initiated a dialogue with relevant US officials to encourage such government-to-government engagement."

So Wednesday's hearings may not turn out to be the one-sided slamming session that has been anticipated. For many people in Asia, however, the political point and counterpoint that are about to take place in Washington seem little more than a rhetorical luxury. If members of the human-rights committee were to ask Chinese Internet users if they are more informed now, even with a censored Internet, than they have ever been before, the answer would be an unqualified yes. And surely the way to fight back against censorship in China is not for the US companies to pull out, thus leaving Chinese cyberspace completely in the hands of the Public Security Bureau.

The situation is complex, but some things seem reasonably clear: in the new, economically rising China, censorship probably will not end because of anything Google and/or other foreign companies decide to do or not to do. And neither will congressional ranting in the US make much difference. When blocking the free flow of information across its borders dulls China's competitive edge and impedes its economic growth sufficiently to put Communist Party rule at risk, it will stop. For now, indeed, presence (not to mention huge profits) is better than absence.

Kent Ewing is a teacher and writer at Hong Kong International School. He can be reached at kewing@hkis.edu.hk.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us for information on sales, syndication and republishing .)


The lesser of two Googles
(Feb 3, '06)

Google losing ground to Baidu
(Sep 16, '05)

Yahoo's fingering of reporter hurts tech funding (Sep 16, '05)

Microsoft filters 'democracy' in China (Jun 15, '05)

Propagandists vs the Internet in China (Dec 15, '04)

 
 



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