China Net Censorship Seen as Trade Dispute; Policy Changes Urged

Internet censorship and regulation in China has serious economic implications for U.S. companies like Go Daddy, Sen. Byron Dorgan, D-N.D., chairman of the Commission said. China’s Internet regulations often run against basic international trade principles of nondiscrimination and maintaining a level playing field, he said, saying the Commission is dedicated to understanding the connections between trade and human rights in China. Only when China respects human rights and allows free flow of information, can it be treated as a member of the international community, said Dorgan.

The Chinese Embassy declined to send a representative to the hearing but sent a statement by the Chinese Internet Bureau of the Information Office of the State Council commenting on Google’s withdrawal, Dorgan said. Google violated the “written promises” it made when entering China by stopping filtering its search service and making “thinly-veiled accusation against China,” the statement said. “We are firmly opposed to the politicization of commercial issues,” it said.

Whether recent cyber attacks against Google and Go Daddy were state-sponsored drew questions from several commissioners. “We have no evidence that the Chinese government is behind the attack,” Alan Davidson, Google’s director of U.S. public policy said. But both Davidson and Jones acknowledged that the attacks are sophisticated and require many Internet resources. Attacks against Go Daddy were designed to disable websites that “somebody doesn’t like,” said Christine Jones, Go Daddy Group’s executive vice president. Former U.S. ambassador to Hungary Mark Palmer, vice chairman at Freedom House and a China expert, disagreed. “It’s obvious that it’s the Chinese government. It’s a matter of government policy,” he said. Meanwhile, offering service in China is always Google’s plan, but conversations with Chinese officials were discouraging, he said, responding to questions on Google’s future plans in China. Google, which recently moved its China site to Hong Kong, hopes people in China can access the uncensored site there, he said.

Rep. Chris Smith, R-N.J., pushed the Global Online Freedom Act, saying it would give American IT companies the U.S.-government back-up they need to negotiate with repressive governments. If the government’s Internet police intercept a human rights activist’s e-mail, and demand the company turn over personally identifying information on the account, the company will notify the Attorney General, who can then bring the weight of the U.S. government into the matter, he said. Rep. David Wu, D-Ore., encouraged everyone in the Internet culture to express themselves so more organizations and businesses could follow Google’s example. “Great power comes with great responsibility,” said Sen. George LeMieux, R-Fla., saying China is responsible to allow free flow of information.

Governments should make every effort to maximize access to information online, Davidson said. Google urged ensuring that the U.S. government makes the issue of Internet openness, including the free flow of information, an important part of foreign policy, trade, development and human rights engagement, he said. That includes prioritizing the issue as a matter of U.S. foreign policy, including in various dialogues that the U.S. government pursues, he said. Establishing transparency as a norm when governments attempt to censor or request information about users, or even when a company’s network comes under attack, is critical, he said. He urged retaining users’ trust by committing to protect their privacy and security.

"We hope the U.S. government can use its influence with authorities in China to increase Chinese enforcement activities relating to Internet abuse while encouraging the free exchange of ideas, information and trade,” Jones said. This would include the retraction of China’s recent policies relating to the registration of .CN domain names, which will act as a barrier to Internet access by Chinese nationals, she said.

The U.S. government should investigate cases of Internet censorship and the U.S. Trade Representative, the State and Commerce Departments should raise issues of Internet restrictions and combat them using the means of their respective offices, said Ed Black, CEO of the Computer & Communications Industry Association. USTR should highlight Internet censorship policies in trade reports and review foreign government restrictions on the Internet, he said. The U.S. government should also negotiate provisions that promote internet commerce, openness and freedom in trade and other agreements, he said.