Internet: March 2010 Archives

By Miguel Helft and David Barboza | The New York Times
March 22/23, 2010

Just over two months after threatening to leave China because of censorship and intrusions from hackers, Goolge on Monday closed its Internet search service there and began directing users in that country to its uncensored search engine in Hong Kong.

While the decision to route mainland Chinese users to Hong Kong is an attempt by Google to skirt censorship requirements without running afoul of Chinese laws, it appears to have angered officials in China, setting the stage for a possible escalation of the conflict, which may include blocking the Hong Kong search service in mainland China.

The state-controlled Xinhua news agency quoted an unnamed official with the State Council Information Office describing Google's move as "totally wrong."

"Google has violated its written promise it made when entering the Chinese market by stopping filtering its searching service and blaming China in insinuation for alleged hacker attacks," the official said.

The Chinese Foreign Ministry said on Tuesday that the government will handle the Google case "according to the law," Reuters reported. The ministry spokesman, Qin Gang, said at a regular briefing in Beijing that Google's move was an isolated act by a commercial company, and that it should not affect China-U.S. ties "unless politicized'' by others.

Google declined to comment on its talks with Chinese authorities, but said that it was under the impression that its move would be seen as a viable compromise.

"We got reasonable indications that this was O.K.," Sergey Brin, a Google founder and its president of technology, said. "We can't be completely confident."

Google's retreat from China, for now, is only partial. In a blog post, Google said it would retain much of its existing operations in China, including its research and development team and its local sales force. While the China search engine, google.cn, has stopped working, Google will continue to operate online maps and music services in China.

Google's move represents a powerful rejection of Beijing's censorship but also a risky ploy in which Google, a global technology powerhouse, will essentially turn its back on the world's largest Internet market, with nearly 400 million Web users.

"Figuring out how to make good on our promise to stop censoring search on google.cn has been hard," David Drummond, Google's chief legal officer, wrote in the blog post. "The Chinese government has been crystal clear throughout our discussions that self-censorship is a nonnegotiable legal requirement."

Mr. Drummond said that Google's search engine based in Hong Kong would provide mainland users results in the simplified Chinese characters used on the mainland and that he believed it was "entirely legal."

"We very much hope that the Chinese government respects our decision," Mr. Drummond said, "though we are well aware that it could at any time block access to our services." Some Western analysts say Chinese regulators could retaliate against Google by blocking its Hong Kong or American search engines entirely, just as it blocks You Tube, Facebook and Twitter.

Google's decision to scale back operations in China ends a nearly four-year bet that Google's search engine in China, even if censored, would help bring more information to Chinese citizens and loosen the government's controls on the Web.

Instead, specialists say, Chinese authorities have tightened their grip on the Internet in recent years. In January, Google said it would no longer cooperate with government censors after hackers based in China stole some of the company's source code and even broke into the Gmail accounts of Chinese human rights advocates.

"It is certainly a historic moment," said Xiao Qiang of the China Internet project at the University of California, Berkeley. "The Internet was seen as a catalyst for China being more integrated into the world. The fact that Google cannot exist in China clearly indicates that China's path as a rising power is going in a direction different from what the world expected and what many Chinese were hoping for."

While other multinational companies are not expected to follow suit, some Western executives say Google's decision is a symbol of a worsening business climate in China for foreign corporations and perhaps an indication that the Chinese government is favoring home-grown companies. Despite its size and reputation for innovation, Google trails its main Chinese rival, Baidu.com, which was modeled on Google, with 33 percent market share to Baidu's 63 percent.

The decision to shut down google.cn will have a limited financial impact on Google, which is based in Mountain View, Calif. China accounted for a small fraction of Google's $23.6 billion in global revenue last year. Ads that once appeared on google.cn will now appear on Google's Hong Kong site. Still, abandoning a direct presence in the largest Internet search market in the world could have long-term repercussions and thwart Google's global ambitions, analysts say.

Government officials in Beijing have sharpened their attacks on Google in recent weeks. China experts say it may be some time before the confrontation is resolved.

"This has become a war of ideas between the American company moralizing about Internet censorship and the Chinese government having its own views on the matter," said Emily Parker, a senior fellow at the Center on U.S.-China Relations at the Asia Society.

In China, many students and professionals said they feared they were about to lose access to Google's vast resources.

In January, when Google first threatened to leave China, many young people placed wreaths at the company headquarters in Beijing as a sign of mourning.

The attacks were aimed at Google and more than 30 other American companies. While Google did not say the attacks were sponsored by the government, the company said it had enough information about the attacks to justify its threat to leave China.

People, inside and outside of Google, investigating the attacks have since traced them to two universities in China: Shanghai Jiao Tong University and Lanxiang Vocational School. The schools and the government have denied any involvement.

After serving Chinese users through its search engine based in the United States, Google decided to enter the Chinese market in 2006 with a local search engine under an arrangement with the government that required it to purge search results on banned topics. But since then, Google has struggled to comply with Chinese censorship rules and failed to gain significant market share from Baidu.com.

Google is not the first American Internet company to stumble in China. Nearly every major American brand has arrived with high hopes only to be stymied by government rules or fierce competition from Chinese rivals.

After struggling to compete, Yahoo sold its Chinese operations to Alibaba Group, a local company; eBay and Amazon never gained traction; and Microsoft's MSN instant messaging service badly trails that of Tencent.

Google's departure could present an opportunity for Baidu, whose stock has soared since the confrontation between Google and China began. It could also give a chance to Microsoft, a perennial underdog in Internet search, to make inroads in the Chinese market. Microsoft's search engine, Bing, has a very small share of the market.

Miguel Helft reported from San Francisco, and David Barboza from Shanghai. Steve Lohr contributed reporting from New York.

>> Original Report

By Michael Wines | The New York Times
12 March 2010

One of China's top Internet regulators warned bluntly on Friday that any move by Google to stop censoring its Chinese search engine would be "irresponsible" and would draw a response from Beijing.

The statement by Li Yizhong, China's minister of industry and information technology, followed a statement on Wednesday by Google's chief executive officer, Eric Schmidt, that "something will happen soon" in the two-month standoff over Internet censorship between his company and the Chinese government.

But it was no more clear on Friday what that something might be than it was two months ago, when Google executives first threatened to pull out of China unless the government stopped forcing it to censor the results of users' Internet searches.

Chinese journalists outside Google's Beijing offices on Friday said they had heard the company was planning to close its doors here. But a Google spokeswoman denied that in an article on Thursday in the government-run English-language newspaper, China Daily.

Google's China businesses "are still at normal," and rumors that the company had ordered its Chinese advertising agencies to cease work were not true, the spokeswoman, Marsha Wang, told the newspaper. At Google's headquarters in Mountain View, Calif., another spokeswoman, Jill Hazelbaker, declined to comment on the statements from Mr. Li or any other aspect of its dispute with China.

A company spokesperson said Wednesday that Google expected the dispute to be settled "in weeks, not months."

Speaking on the sidelines of the annual meeting of the National People's Congress, China's party-controlled legislature, Mr. Li said that he hoped for an amicable resolution to the standoff. But he gave no indication that the government would ease the censorship rules that are at the heart of Google's ultimatum.

"I hope Google will abide by Chinese laws and regulations," The Associated Press quoted Mr. Li as saying. But "if you want to do something that disobeys Chinese law and regulations, you are unfriendly, you are irresponsible and you will have to bear the consequences."

Whether the company chooses to remain in China, he added, will be up to Google.

Since it opened shop in China four years ago, Google has captured roughly 30 percent of the search market in the world's largest assemblage of Internet users, and it is a favorite among the better-educated and wealthier classes that advertisers covet. But the company has long been uncomfortable with Chinese demands that it censor search results to prevent users from viewing some kinds of content, notably political matters that the government deems unacceptable.

Google's Chinese Web site does censor some of its content, but its restrictions are generally less onerous than elsewhere, and the censored items are clearly identified as having been banned by the authorities.

>> Complete Report

By Associated Press | via UNCENSORED Yahoo! News
March 11, 2010

China will toughen requirements for reporters by launching a new certification system that includes training in Marxist and communist theories of news, a media official said, citing problems with the current crop of mainland journalists.

The South China Morning Post reported Thursday that Li Dongdong, deputy director of the General Administration of Press and Publication, said some reporters were giving Chinese journalism a bad name because they hadn't been properly trained. She didn't give any specific examples.

Similar comments by Li were posted on the Web site of the official Xinhua News Agency.

Li told Xinhua on Monday that the new qualification system would ensure all journalists learn socialist and Marxist theories of journalism and media ethics.

"Comrades who are going to be working on journalism's front lines must learn theories of socialism with Chinese characteristics and be taught Marx's view on news, plus media ethics and Communist Party discipline on news and propaganda," Li was quoted as saying.

Communist theories of journalism say media should serve the communist leadership and not undermine its initiatives. Many democracies embrace a model where reporters serve a watchdog role independent of the government.

Chinese media have become more freewheeling since newspapers and broadcasters began relying increasingly on advertising instead of just Communist Party patronage for their survival. There have been problems with reporters demanding payment for positive news coverage or to bury a story, and instances of reporters fabricating news.

Others have run afoul of the government for reporting accurately on stories that officials didn't want publicized. Government censors keep a tight grip on news content and routinely ban reporting on issues deemed too politically sensitive or destabilizing.

A senior editor with the Beijing-based Economic Observer said this week he had been punished for co-authoring an editorial that urged the government to scrap an unpopular household registration system, saying it discriminated against the poor.

>> Original Source

By Radio Free Asia
March 08, 2010

China's premier promises a more open society, but his speech to parliament meets with skepticism.

Chinese premier Wen Jiabao has called for greater oversight of government by ordinary citizens and media, but analysts and netizens have voiced skepticism that real change is on the way.

During his annual work report to the National People's Congress (NPC) in Beijing on Friday, Wen called on China's leadership to create an environment in which it is possible for people to criticize and supervise the government.

"We must create the conditions under which people are allowed to criticize the government, to supervise the government," Wen told delegates to the country's parliament.

"At the same time, we must bring out the ability of the media to exercise a supervisory role, so that power is exercised in broad daylight."

As he spoke, Beijing police held the capital under a tight security clampdown, ensuring that anyone with a grievance against the government was kept well away from the Great Hall of the People on Tiananmen Square.

Netizens joked online that Wen's promises sounded like the self-development promises made by primary school children in China: "These things are only ever a goal," one quipped.

Wen called on members of the ruling Communist Party to be scrupulous over their use of public money, following a number of high-profile online exposes of the lifestyles of high-ranking officials.

Call for official discipline

"All of the leadership, especially high-ranking officials, must resolutely implement guidelines delivered by central government regarding personal finances and property of the individual," said Wen.

"This includes their income, housing, investments, and the careers taken up by their spouses, sons, and daughters."

Wen also promised to strengthen channels for consultation with Chinese citizens, who should be given the opportunity to oversee the government's activities.

China's army of petitioners say they have repeatedly been stonewalled, detained in "black jails," beaten, and harrassed by the authorities if they try to take a complaint against local government actions to a higher level of government.

"Does central government have any measures to ensure that people who report local officials online aren't hounded and detained, or pursued by local mafia?" wrote one petitioner from the eastern city of Ningbo.

Press freedom lacking

Another wrote from Chengdu that the government should first guarantee the media's right to carry out normal reporting and newsgathering activities.

"Officials involved in a situation have the responsibility to answer questions from journalists. Those who refuse to do so should be subjected to harsh punishment: at the very least a demotion or a pay cut for failing to carry out administrative orders."

But Hong Kong media reports said Chinese media have already been forbidden to report on any negative news from Beijing during the annual parliamentary sessions.

According to the Chinese-language Ming Pao newspaper, petitions from retired members of the People's Liberation Army, from workers in certain industries, and from evictees in Beijing are forbidden topics.

And the difficulties faced by migrant workers in getting schooling for their children in Beijing were also struck off the list of permissible news items for traditional media and online news providers.

Beijing University economics professor Xia Yeliang said that Wen's promises of greater academic freedom in China's universities have also been heard before, and remain undelivered.

Twitter police

"They have been talking about reforming China's education system for many years now," Xia said.

"Now, they are saying once again that they want to turn the universities into top-flight universities [with no Party presence and academic freedom], but they haven't said when they will achieve this by."

One Beijing-based blogger, known online by the nickname Zhang Shuji, said China's Internet police regularly patrol micro-blogging services like Twitter.

"They won't necessarily take part in the discussion. They just keep a record," he said.

"It's a bit like using [the popular chat service] QQ. The Web police just make a back-up copy of all the chats. Then, if they get a subpoena, they just print it off for evidence that the person concerned was expressing opinions tantamount to incitement."

China had more than 40,000 active Twitter users as of last week, with more than 200,000 people registered on the service. More than half of Twitter's most-followed users are civil rights and pro-democracy activists from China.

Editors cautioned

An official report at the end of last year identified microblogging as one of the most powerful drivers of public opinion in China.

Sina's home-based microblogging service employs a team of more than 300 people, not just to monitor what is being posted, but to set up blocks and filters.

One of the coordinators of the community Internet blog Kenengba, A Chan, wrote: "Sina's microblogging service used to take down my posts without notifying me. Later on, they started watching everything I wrote, but they still didn't notify me."

In recent days, editors from 13 different regional state-run newspapers have been handed official warnings after they published a joint editorial calling for an end to the household registration, or hukou, system, which they said discriminates against rural residents who move to large cities to work.

Wen pledged in his speech to abolish some restrictions on migrant workers in smaller towns and cities, but stopped short of abolishing the hukou system, saying the authorities will take a "step-by-step"
approach.

Beijing University's Xia said the same pledge has already been heard from China's leaders.

"We have heard them say this many times now, over many years, to win a bit of applause in the moment, and nothing has come of it so far," Xia said. "If they really could do what they are saying, there wouldn't be so much discontent among ordinary Chinese people."

"Right now there is a huge gap between what the government says it's going to do, and what it actually does," he said.

Original reporting in Mandarin by Xin Yu and Qiao Long, and in Cantonese by Hai Nan. Mandarin service director: Jennifer Chou. Cantonese service director: Shiny Li. Translated and written for the Web in English by Luisetta Mudie. Edited by Sarah Jackson-Han.

>> Original Source

Michael Evans, Giles Whittell | TimesOnLine (United Kingdom)
March 08, 2010

Urgent warnings have been circulated throughout Nato and the European Union for secret intelligence material to be protected from a recent surge in cyberwar attacks originating in China.

The attacks have also hit government and military institutions in the United States, where analysts said that the West had no effective response and that EU systems were especially vulnerable because most cyber security efforts were left to member states.

Nato diplomatic sources told The Times: "Everyone has been made aware that the Chinese have become very active with cyber-attacks and we're now getting regular warnings from the office for internal security." The sources said that the number of attacks had increased significantly over the past 12 months, with China among the most active players.

In the US, an official report released on Friday said the number of attacks on Congress and other government agencies had risen exponentially in the past year to an estimated 1.6 billion every month.

The Chinese cyber-penetration of key offices in both Nato and the EU has led to restrictions in the normal flow of intelligence because there are concerns that secret intelligence reports might be vulnerable.

Sources at the Office for Cyber Security at the Cabinet Office in London, set up last year, said there were two forms of attack: those focusing on disrupting computer systems and others involving "fishing trips" for sensitive information. A special team has been set up at GCHQ, the government communications headquarters in Gloucestershire, to counter the growing cyber-threat affecting intelligence material. The team becomes operational this month.

British and American cyber defences are among the most sophisticated in the world, but "the EU is less competent", James Lewis, of the Centre for Strategic and International Studies, said. "The porousness of the European institutions makes them a good target for penetration. They are of interest to the Chinese on issues from arms sales and nuclear non-proliferation to Tibet and energy."

The lack of routine intelligencesharing between the US and the EU also contributes to the vulnerability of European systems, another analyst said. "Because of Britain's intelligence-sharing relationship with America our systems have to be up to their standards in a way that some of the European systems don't," he explained.

Jonathan Evans, Director-General of MI5, warned in 2007 that several states were actively involved in large-scale cyber-attacks. Although he did not specify which states were involved, security officials have indicated that China now poses the gravest threat. Beijing has denied making such attacks.

Robert Mueller, FBI Director, has warned that, in addition to the danger of foreign states making cyber-attacks, al-Qaeda could in the future pose a similar threat. In a speech to a security conference last week, Mr Mueller said terrorist groups had used the internet to recruit members and to plan attacks, but added: "Terrorists have \ shown a clear interest in pursuing hacking skills and they will either train their own recruits or hire outsiders with an eye towards combining physical attacks with cyber-attacks."

He said that a cyber-attack could have the same impact as a "well-placed bomb". Mr Mueller also accused "nation-state hackers" of seeking out US technology, intelligence, intellectual property and even military weapons and strategies.To help to fight the growing threat, the Office of Cyber Security, set up last year as part of the Government's national security strategy, liaises with America's so-called cyber czar, Howard Schmidt, who was appointed by President Obama to protect sensitive government computers.

British officials said that everyone in sensitive jobs had been warned to be especially cautious about disseminating intelligence and other classified information. Whether British intelligence is involved in retaliatory attacks is never confirmed. However, officials said that there was a significant difference between being part of an information war and indulging in aggressive attacks to disrupt another country's computer systems.

Dr Lewis said that neither the US nor any of its Western allies had formed an effective response to the Chinese threat, which has its origins in a massive boost to Chinese technology ordered by Deng Xiaoping, the late Chinese leader, in 1986. The West's own cyber offensives have so far been directed largely at terrorists rather than nation states, giving China virtually free rein to penetrate Western systems with its own world-class hackers and increasingly popular Chinese-made components. "You almost have to admire them," Dr Lewis said. "They have been very consistent in their goals."

>> Original Source