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Yahoo seeks help on working in countries with repressive regimes(Chicago Tribune (KRT) Via Thomson Dialog NewsEdge) CHICAGO _ Stung by criticism that its Internet operations in China aided the Communist government's pursuit and arrest of two dissidents, Yahoo Inc. called for help Monday in figuring out how to do business ethically in countries with repressive regimes. Two days before its executives will appear at a congressional hearing, Yahoo pleaded its case as a company that must work with local governments to achieve its global aspirations. It asked the U.S. government to take the lead in prodding undemocratic countries to relax strict controls on the flow of information. Yahoo, as well as Google and Microsoft, have significant online operations in China, providing e-mail services, search functions and even hosting services for blogs. To do so, the companies play by China's rules. Increasingly, those rules are being called into question by humanitarian organizations and the U.S. government. Top U.S. Internet companies have become "a megaphone for communist propaganda and a tool for controlling public opinion," said U.S. Rep. Christopher H. Smith, R-N.J. "Evidence suggests that they are preventing the opening up of China, even if they say they are opening it up," Smith said. "If you help the security police track these people, who is there to promote democracy? You give the dictatorship a new lease on life." Smith has scheduled a hearing Wednesday to discuss the business practices of Internet companies in China. Representatives from the companies are scheduled to appear. American companies _ from automakers to consumer goods marketers _ have long had to justify why they do business in some undemocratic countries But the questions have become far more complex in the Internet era, where global Web firms not only operate in countries like China but also cooperate with the Communist government and its security apparatus to block objectionable Web sites and keep track of dissidents. Dali Yang, a professor of political science at the University of Chicago, countered some of the criticism. By being in China, he said, these Internet companies help with the free flow of information. "There is a very strong argument to keep American companies engaged in the Chinese market," he said. "There is an enormous amount of information flowing already and the American companies are playing a significant role." The outcome of the debate could slow American companies' significant role in developing the Web in China. Already, the stakes are high, as investments in Chinese Internet companies have reached significant sums. Last year, for instance, Yahoo invested $1 billion in Alibaba.com, a Chinese e-commerce site. Criticism of the way American companies do business in China has been mounting. Google has come under pressure for allowing its search engine to be filtered in China so that terms considered objectionable by the government, such as Tiananmen Square, would direct users to government-friendly sites. Yahoo came under fire for two recent incidents. Last week, Reporters Without Borders, a French media watchdog group, accused Yahoo of cooperating with Chinese officials in an investigation that led to the conviction of a former civil servant. The civil servant was first arrested in 2003 after he criticized "corruption of local officials" in an online chat, according to the French group. "We are looking into the matter," said Mary Osako, a Yahoo spokeswoman. That incident follows another accusation by Reporters Without Borders that Yahoo helped turn over records that lead to the conviction of Chinese journalist Shi Tao, who was sentenced to 10 years in prison. "The facts surrounding the Shi Tao case are very distressing to Yahoo," Osako said. "We learned the depressing facts on the case through the press." In its statement Monday, Yahoo said it "is committed to open access to information and communication on a global basis." Furthermore, Yahoo said, "doing business in certain countries presents U.S. companies with challenging and complex questions. We are deeply concerned by efforts of governments to restrict and control open access to information and communication. We also firmly believe the continued presence and engagement of companies like Yahoo is a powerful force in promoting openness and reform." (EDITORS: BEGIN OPTIONAL TRIM) Smith said Monday "the fact that Yahoo recognizes a problem is a welcome step." He said he will have many questions for the technology companies at Wednesday's hearing. "There will be a lot of process questions," Smith said. "What is the exact process of working the Chinese government? How often are they turning over e-mails of dissidents? How often does this happen?" One of the suggestions that the Smith is expected to push forward is that U.S. Internet companies locate their e-mail servers outside of a repressive country's borders. That way, the government would not be able to access that information. But Yang said that is already happening and it's not practical for the growth of the Internet in China to solely base servers outside the country. He said Internet companies want to have services based in China and offshore. Being based "offshore stops the blocked content," he said, but it provides limited bandwidth. "So being based in China allows people to access Internet services much more easily, plus they can get targeted ads" that help grow the business of companies like Yahoo and Google. (END OPTIONAL TRIM) Osaka said that Yahoo doesn't think the company can fix all the issues itself. "Our goal is to help drive the discussion between U.S. companies with our government," Osako said. "This is a government-to-government issue. We believe the executive branch of the U.S. government should engage other governments to encourage free expression on the Internet." (EDITORS: STORY CAN END HERE) But to human rights activists, the notion that this is an issue between governments doesn't ring true. Yahoo is "limiting itself as a private company that can only do so much," said Sharon Hom, executive director of New York-based Human Rights in China. "We cannot move forward on the protection of human rights if we talk this kind of mush. It is too inaccurate, incomplete and vague." Nonetheless, despite the criticism and censorship the U.S. companies are dealing with, no one wants to see the Internet giants abandon the country. "This issue needs some really hard pushing," Hom said. "But it is in all our interests for China to develop a real society for trading information." ___ (c) 2006, Chicago Tribune. Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/ Distributed by Knight Ridder/Tribune Information Services. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected]. |