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China Current Events International Relations Legal & Regulatory Science & Technology

China Google Relationship on the Rocks

Recent cyber attacks threatening user security, corporate data, and critical software source codes, as well as expanding censorship restrictions demanded from the Chinese government, have led Google execs to question whether remaining in China is in the company’s best interest and, furthermore, whether a decision to stay would adhere to the company’s official motto, “Don’t be evil.”

Although blocked in China, here is the link to Google’s official statement issued yesterday for our readers abroad.

Here is also the CNBC interview with David Drummond, chief legal officer at Google, who discusses the Internet giant’s reaction.

Google has disclosed that its computer systems experienced sophisticated cyber attacks last month that it suspects originated in China and that targeted Gmail user accounts of Chinese human rights activists.

Taking into consideration the technology, brains, and power behind the Google machine, as well as the severity of the implications, it is pretty safe to say that this isn’t a baseless claim.

Google’s decision to stand up to the Chinese government has earned them praise around the world from human rights advocates, but has undoubtedly irked the powers that be in the Chinese government and has received mixed reactions within China.

China’s largely government influenced media outlets have been trying to downplay the news online and during television broadcasts.
Xinhua: China seeks clarity on Google’s intentions

China Daily: Google pullout threat ‘a pressure tactic’

Shanghai Daily: Mixed bag of reaction to Google quit threat

Since its entrance into the Chinese market in 2006, Google has come under criticism from human rights activists for agreeing to censor a portion of their search results, resulting in some calling Google.cn the ‘neutered Google’ or ‘communist Google’.

Google, however, has defended its decision to enter the Chinese market with a modified version, claiming that it is still a more open option for Chinese Internet users than domestic search engines like Baidu, which controls approximately 61 percent of the market (to Google’s approx. 31 percent) and maintains a close relationship with the government.

While this is largely true, entering sensitive words like ‘freedom,’ ‘freedom of speech,’ ‘freedom of religion,’ and ‘dalai lama’ into Google search within China will not only lead you to a blocked page, but will shut down the Google search function on your computer for 90 seconds, even today.
Regardless of whether or not Google indeed leaves China, the fallout from this will be very interesting to watch.

Here are some more interesting articles on the subject:
Google Gets on the Right Side of History

Google is not alone in calling China’s bluff

Clash on the Great Firewall

What do Chinese people think about all this? China Geeks has compiled and translated excerpts from all over the web. To find out what Chinese people have to say on the topic, click here!

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China Cuba Current Events International Relations

Cuba and China Get Friendly

The Cuban Government awarded China’s Ambassador to Cuba Zhao Rongxian with the Friendship Medal on Thursday for his contributions to strengthening friendship and cooperation between the two countries.

China is Cuba’s second largest commercial partner, one of its chief importers, and a longstanding source of credit to the island nation, according to information provided by the Cuban Government.

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China Finance & Taxes

Lending Up in China

Xinhua reports that, as urban fixed-asset investment continues to rise, China will see a steady increase in mid to long term lending.

According to a report from Galaxy Securities on Wednesday, monthly new yuan-dominated loans over the next four month are expected to reach 450 billion yuan (USD65.9 billion).

Data from the National Bureau of Statistic showed that fixed-asset investment in China’s urban areas rose to 11.3 trillion yuan, up 33 percent in the first eight months of 2009.

New loans in the first eight months stood at 8.15 trillion yuan, far exceeding the year end target of five trillion yuan, according to the People’s Bank of China.

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China

China Detention of Rio Tinto Execs Gives Foreign Investors Pause

The detention of four Rio Tinto executives in Shanghai last week is likely to rattle international investors precisely at a time when China needs foreign support as it strives to move away from an export-based, low-end manufacturing center. China’s Ministry of State Security took the four into custody and failed to inform either Rio Tinto or the employees’ families – one of the four was an Australian citizen whose government was also kept in the dark.

With allegations of pricing disputes, tit-for-tat over the recent blocking of a sale of part of the company to the Chinese state-owned Chinalco, and the lack of information coming from the Chinese authorities on the matter, foreign business working in China are beginning to voice concerns.

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China Russia

China, India and Russia Question U.S. Dollar Dominance

China, India  and Russia are increasingly calling for a rethink of how global currency reserves are composed and managed, underlining a power shift to emerging markets from the developed nations that spawned the financial crisis.

“There should be a system to maintain the stability of the major reserve currencies,” Bloomberg reported former Chinese Vice Premier Zeng Peiyan as saying in a speech in Beijing.

Leaders from China and India are preparing to join their counterparts from the Group of Eight industrialized nations – the United States, Japan, Germany, Britain, France, Italy, Canada and Russia – at a summit in Italy next week. In addition to China and India, Brazil will also send representatives to the summit.

Emerging markets continue to remain dependent on the U.S. dollar, thanks in part to the United States’ status as the world’s largest economy and a US$2.5 trillion export market. Shares of dollars in global foreign- exchange reserves increased to 65 percent in the first three months of this year, the highest since 2007 according to the IMF.

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China Culture & History

Inspiration for M. Butterfly Dies

Shi Pei Pu, the Beijing opera singer and spy who was the inspiration for the broadway show M. BUtterfly died in Paris last week. Shi’s sexually convoluted love affair with a French Embassy worker created one of the strangest cases in international espionage.

The New York Times reported:

Mr. Shi, who was convicted of espionage in France in 1986 along with his lover, Bernard Boursicot, was believed to be 70. He had also been believed for years to be a woman, at least by Mr. Boursicot, who served time in prison after the affair and became a laughingstock in France.

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China Russia

China, Russia Continue to Improve Relations

China and Russia are stepping up communication as relations between the two neighboring countries continues to improve.

Chinese Foreign Ministry spokesman Qin Gang Thursday praised his country’s relations with its giant neighbor, Russia. China is willing to “join hands” with Russia Qin said, especially against the backdrop of what he describes as the “complicated international situation.”

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China Culture & History

Zhao Ziyang’s Secret Memoirs Released

The release of a top Chinese official’s personal memoirs may shed new light on the political and free-market reforms of the 1980’s in China, as well as the events leading up to the Tiananmen Square demonstrations and subsequent violence on June 4th, 1989.

Zhao Ziyang, the former Chinese Premier from 1980 to 1987 and then Secretary General from 1987 to 1989, was placed on house arrest following the Tiananmen Square incident for his sympathizing with demonstrators; and would remain there until his death in 2005.

During his years in isolation, Zhao managed to relate his personal experiences at the forefront of Chinese politics by recording over cassettes of children’s songs and the Chinese opera.

The tapes were subsequently smuggled out of the country by some of Zhao’s colleagues and are the material for the 306-page book Prisoner of the State: The Secret Journal of Premier Zhao Ziyang which will be released by Simon & Schuster on May 19th.

No doubt to the consternation of the current Chinese administration, Zhao praises the western system of parliamentary democracy in the last pages of his book as the only way to stamp out corruption and the growing economic inequality among China’s citizens.

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China Culture & History

China Releases Student Death Toll in 2008 Sichuan Earthquake

5,335 students were killed or remain missing as a result of the 7.9 magnitude earthquake that hit Sichuan Province on May 12th last year, according to government officials. Another 546 students were left disabled.

Parents of the deceased have been demanding answers and accountability from the government for what they claim to be poorly constructed school buildings, but have been met with harassment and imprisonment.

As many as 7,000 schools collapsed during the earthquake, according to state media, with another 14,000 damaged.

Official estimates put the total number of deaths as a result of the earthquake at around 70,000 with another 18,000 missing.

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Central Asia China Culture & History Russia

Russia, China, SCO to Conduct Military Exercises in Kazakhstan

The Shanghai Cooperation Organization (SCO) met last week in Moscow to discuss the possibility of increasing the coalition’s collaboration on military training to combat terrorism, extremism, and separatism.

Although the organization – made up of Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan – has maintained that it is not a political/military alliance, it seems that they have been moving towards that direction since Russia took the SCO presidency in August 2008.

As part of the SCO’s “Peace Mission 2010,” military exercises will be conducted in Kazakhstan with the bulk of the armed forces participating in the drills hailing from Russia and China.

“Specific anti-terrorism activities will be practiced at drills in Kazakhstan. All previous and upcoming military exercises involving SCO countries are of a counter-terrorist nature,” said Russia’s Defense Minister Anatoliy Serdyukov.