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	<title>Contrarian Stock Market Investing News - Featuring Bargain Stocks &#187; China politics</title>
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		<title>What’s Behind China’s Assault on Google</title>
		<link>http://www.contrarianprofits.com/articles/what%e2%80%99s-behind-china%e2%80%99s-assault-on-google/18401</link>
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		<pubDate>Fri, 26 Jun 2009 17:00:11 +0000</pubDate>
		<dc:creator>Jason Simpkins</dc:creator>
				<category><![CDATA[Financial News]]></category>
		<category><![CDATA[BIDU]]></category>
		<category><![CDATA[China politics]]></category>
		<category><![CDATA[credit crisis]]></category>
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		<category><![CDATA[Jason Simpkins]]></category>

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		<description><![CDATA[<p>The feud between authorities in China and Google Inc. (Nasdaq: <a href="http://www.google.com/finance?q=goog" target="_blank">GOOG</a>) escalated Wednesday night when Chinese users were blocked from Google’s global Web site for a period of at least two hours.</p>
<p>For weeks China has been chastising Google for disseminating “huge amounts of porn and lewd information.” The company has made a strong effort to accommodate Beijing’s high “moral” standard by launching a separate Chinese Web site, <a href="http://www.google.cn/" target="_blank">Google.cn</a>, to filter out sensitive information.</p>
<p>Still, China’s war on the search engine has only intensified. That has led some analysts to believe that the communist government is acting on behalf of Baidu Inc. (Nasdaq ADR: <a href="http://www.google.com/finance?q=NASDAQ%3ABIDU" target="_blank">BIDU</a>), or perhaps as part of a smear campaign to drum up support for its latest attempt to tighten its grip&#8230;</p>]]></description>
			<content:encoded><![CDATA[<p>The feud between authorities in China and Google Inc. (Nasdaq: <a href="http://www.google.com/finance?q=goog" target="_blank">GOOG</a>) escalated Wednesday night when Chinese users were blocked from Google’s global Web site for a period of at least two hours.</p>
<p>For weeks China has been chastising Google for disseminating “huge amounts of porn and lewd information.” The company has made a strong effort to accommodate Beijing’s high “moral” standard by launching a separate Chinese Web site, <a href="http://www.google.cn/" target="_blank">Google.cn</a>, to filter out sensitive information.</p>
<p>Still, China’s war on the search engine has only intensified. That has led some analysts to believe that the communist government is acting on behalf of Baidu Inc. (Nasdaq ADR: <a href="http://www.google.com/finance?q=NASDAQ%3ABIDU" target="_blank">BIDU</a>), or perhaps as part of a smear campaign to drum up support for its latest attempt to tighten its grip on Internet content that is becoming harder to control.</p>
<p>Google’s word association feature – a drop-down box that offers suggestions based on the terms typed into the search engine – was disabled last week after a report on China Central Television (CCTV), the state television network, showed how typing the Chinese word for son could solicit terms that have lewd connotations. However, it has since been revealed that <a href="http://globalvoicesonline.org/2009/06/19/cctvs-propaganda-campaign-against-googlecn/" target="_blank">a Chinese youth, depicted in the television segment as a university student who had started an anti-Google campaign, was actually an intern at television station</a>.</p>
<p>Coincidentally, <a href="http://www.upiasia.com/Economics/2009/06/23/googles_pornography_debacle_in_china/1077/" target="_blank">the lion’s share of Baidu’s first-quarter advertising budget – about $5.6  million – went to the state-owned CCTV</a>, according to <strong><em>UPI Asia Online</em></strong>.</p>
<p>Searches for foreign Web sites have also been suspended on Google, while domestic competitors like Baidu continue to offer these features – this despite the fact that there is evidence to suggest searches conducted on Baidu offer up just as many pornographic or illicit sites.</p>
<p>“<a href="http://www.time.com/time/world/article/0,8599,1906133,00.html" target="_blank">Chinese search engines are the obvious beneficiaries of [the criticism of Google]</a> and that suits the authorities fine,” an industry insider speaking on the condition of anonymity told <strong><em>TIME</em></strong> magazine. “They all take care of the political censorship themselves and obviously have to do exactly what the bureaucrats tell them. A foreign company like Google is that much harder to control.”</p>
<p>Baidu has a firm grasp – about 60% — of the Chinese Internet search market, but Google has amassed about a third of that market since 2005.</p>
<p>Another reason analysts believe Chinese authorities may have singled out Google is that Beijing wants to divert criticism away from the controversy surrounding its newly unveiled filtering system, Green Dam Youth Escort.</p>
<p>China’s Ministry of Industry and Information Technology (MIIT) last month announced that starting July 1 all computers sold in the country would have to have Green Dam preinstalled.</p>
<p>This not only angered a Chinese public that’s already bemoaning the presence of <a href="http://www.randomwire.com/wp-content/uploads/chinese-cyber-police.jpg" target="_blank">cyber cops</a>, as well as computer manufactures who argue that the software is an onerous and costly expenditure – no to mention an infringement on civil liberty.</p>
<p>“It doesn’t seem like a coincidence that [the attack on Google] comes amid mounting criticism of Green Dam, whose ostensible purpose is to block porn,” Rebecca MacKinnon, a former Beijing bureau chief for <strong><em>CNN</em></strong>who is writing a book about the Internet in China, told <strong><em>TIME</em></strong>. “Now they’re trying to show what a bad job Google does in protecting China’s children.”</p>
<p>No high-profile computer manufacturers have indicated one way or another whether they will or will not include the software, but several – including Hewlett Packard Co. (NYSE: <a href="http://www.google.com/finance?q=NYSE%3AHPQ" target="_blank">HPQ</a>) and Taiwan’s <a href="http://www.google.com/finance?q=TPE%3A2353" target="_blank">Acer Inc.</a> – have said they are asking regulators for details.</p>
<p>With the deadline less than a week away, most companies are no doubt hoping China will cave to international pressure and rescind its mandate. And U.S trade officials, who don’t often intervene directly in matters of Chinese Internet censorship, have demanded that China do just that.</p>
<p>Officials lodged a formal complaint to the World Trade Organization (WTO) that the Green Dam mandate violates free trade rules and Trade Representative Ron Kirk and Commerce Secretary Gary Locke wrote a letter to the Chinese Ministry of Commerce asking that the country drop its requirement.</p>
<p>“China is putting companies in an untenable position by requiring them, with virtually no public notice, to pre-install software that appears to have broad-based censorship implications and network security issues,” said U.S. Commerce Secretary Gary Locke.</p>
<p>Source: <a class="titleref" rel="bookmark" href="http://www.moneymorning.com/2009/06/26/google-china/">What’s Behind China’s Assault on Google</a></p>
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		<title>Internet Censorship Intensifies with China Attempts</title>
		<link>http://www.contrarianprofits.com/articles/internet-censorship-intensifies-with-china-attempts/10886</link>
		<comments>http://www.contrarianprofits.com/articles/internet-censorship-intensifies-with-china-attempts/10886#comments</comments>
		<pubDate>Tue, 06 Jan 2009 12:40:34 +0000</pubDate>
		<dc:creator>Jason Simpkins</dc:creator>
				<category><![CDATA[Financial News]]></category>
		<category><![CDATA[BIDU]]></category>
		<category><![CDATA[China politics]]></category>
		<category><![CDATA[China stimulus]]></category>
		<category><![CDATA[credit crisis]]></category>
		<category><![CDATA[GOOG]]></category>
		<category><![CDATA[Google Inc]]></category>
		<category><![CDATA[Internet Censorship]]></category>
		<category><![CDATA[Jason Simpkins]]></category>
		<category><![CDATA[Sohu Com Inc]]></category>

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		<description><![CDATA[<p>With the onset of 2009, Beijing is cracking down on web portals and search engines that publish material deemed to be too vulgar or subversive for the nation’s 300 million-plus Internet users. Chinese authorities have reportedly implemented new software that lets them more easily track and counter threats, and have issued stern warnings to industry leaders such as Baidu.com Inc. (ADR: <a href="http://finance.google.com/finance?q=NASDAQ%3ABIDU" target="_blank">BIDU</a>) and Google  Inc. (<a href="http://finance.google.com/finance?q=NASDAQ%3AGOOG" target="_blank">GOOG</a>).</p>
<p>The government earlier this week cited 19 Web sites &#8211; including Baidu, Google, Sohu, Sina, and Tianya &#8211; as purveyors of vulgar content that is morally or politically destructive.</p>
<p>Some results produced by search engines had “large amounts of pornographic links [and] after notification from the complaint center, the site did not take effective countermeasures,” the&#8230;</p>]]></description>
			<content:encoded><![CDATA[<p>With the onset of 2009, Beijing is cracking down on web portals and search engines that publish material deemed to be too vulgar or subversive for the nation’s 300 million-plus Internet users. Chinese authorities have reportedly implemented new software that lets them more easily track and counter threats, and have issued stern warnings to industry leaders such as Baidu.com Inc. (ADR: <a href="http://finance.google.com/finance?q=NASDAQ%3ABIDU" target="_blank">BIDU</a>) and Google  Inc. (<a href="http://finance.google.com/finance?q=NASDAQ%3AGOOG" target="_blank">GOOG</a>).</p>
<p>The government earlier this week cited 19 Web sites &#8211; including Baidu, Google, Sohu, Sina, and Tianya &#8211; as purveyors of vulgar content that is morally or politically destructive.</p>
<p>Some results produced by search engines had “large amounts of pornographic links [and] after notification from the complaint center, the site did not take effective countermeasures,” the State Council Information Office said in a statement.</p>
<p>“Some Web sites have exploited loopholes in laws and regulations,” said Cai Minzhao, deputy chief of the Information Office. “They have used all kinds of ways to distribute content that is low-class, crude, and even vulgar, gravely damaging mores on the Internet.”</p>
<p>Cai made clear the “gravity and threat of vulgar current infesting the Internet,” and reminded Web sites that they are liable to face “stern punishment.”</p>
<p>While some of the companies reprimanded agree that it is their responsibility to self-censor, others were caught off guard by Beijing’s sudden crackdown.</p>
<p>“<a href="http://www.ft.com/cms/s/0/dd9c3a30-daf7-11dd-be53-000077b07658,dwp_uuid=9c33700c-4c86-11da-89df-0000779e2340.html" target="_blank">We  find this extremely strange and are still figuring out what exactly happened</a>,”  a manager at Sohu.com Inc. (<a href="http://finance.google.com/finance?q=sohu" target="_blank">SOHU</a>)  told the <strong><em>Financial Times.</em></strong></p>
<p>Cui Jin, a Google public relations officer in Beijing told <strong><em>Reuters</em></strong> that <a href="http://uk.reuters.com/article/mediaNews/idUKSP36401920090105" target="_blank">she  had no comment on the citations, but added that the company abided by  regulations</a>.</p>
<p>“If [users] find content that is contrary to Chinese law, they can report it to Google. And if we find it’s truly illegal, we’ll deal with it according to the law,” said Cui.</p>
<p>If companies are confused, some analysts suggest it may be because Beijing is hiding its true motives for the sudden effort. While the government singled out “vulgar” and “crude” material not suitable for younger audiences, the real goal may be to clamp down political dissent in what has the potential to be a bumpy year.</p>
<p>“I’d guess that this is in response to all the sensitive dates in 2009. They want to tighten up,” Wang Junxiu, a Chinese pioneer of blogging platforms and a critic of censorship, told <strong><em>Reuters.</em></strong> “This is about more than pornography. We’ve had crackdowns on pornography since the start and they’ve never worked, so there must be more than that… It’s a warning.”</p>
<p>This year will mark the 20th anniversary of the  infamous <a href="http://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989" target="_blank">Tiananmen  Square protest of 1989</a>.</p>
<p>Unemployment, driven by the global financial crisis, is set to reach its annual growth target of 8% &#8211; a level many economists believe will contribute to social unrest.</p>
<p>“Unemployment among university graduates and migrant workers, caused by the global economic downturn and the shrinking of export industries <a href="http://news.xinhuanet.com/english/2009-01/05/content_10606970.htm" target="_blank">will  put much stress on Chinese society in 2009, even social risks</a>,” Han  Kang, vice-president of the National School of Administration in Beijing, told <strong><em>Xinhua</em></strong>.</p>
<p>“The 4-trillion-yuan stimulus plan, intended to boost the economy and ensure the 8% growth rate, may not create as many steady jobs as expected,” he added.</p>
<p>Whatever the reason, Beijing has been tightening the reigns on news organizations for infractions such as referring to Taiwan as a country, since the close of the Olympic Games.</p>
<p>In its bid to host the 2008 Olympic Games, Beijing liberalized its stance on Internet censorship. The government made even more concessions when journalists covering the Games openly criticized regulations they considered restrictive and overbearing. However, the Web sites of prominent Western news outlets such as the British Broadcasting Corporation (BBC) and Voice of America, which were accessible during the games, have since been re-blocked.</p>
<p>Beijing TRS Information Technology, China’s leading provider  of search technology and text mining solutions told the <strong><em>Financial Times</em></strong> t<a href="http://www.ft.com/cms/s/0/bbfee450-da83-11dd-8c28-000077b07658,dwp_uuid=9c33700c-4c86-11da-89df-0000779e2340.html" target="_blank">hat  it is working closely with the government to better “manage” public opinion</a>.</p>
<p>“On high-end applications, Chinese police now basically use  TRS technology,” He Zhaohui, marketing manager at TRS told the <strong><em>FT</em></strong>. “We did such systems for eight police stations in Shanghai. The work formerly done by 10 Internet police officers can now be done by one.”</p>
<p>Before implementing the new practices, government officials were simply typing keywords or phrases into search engines and probing the results, He said. Now with TRS’ advanced text-mining technology, authorities are able to anticipate and monitor threats rather than expunge unacceptable content after its publication.</p>
<p>“For example, some Internet propaganda departments supervise forums of university students &#8211; students tend to have more extreme opinions,” He said.</p>
<p>Still, others believe Beijing is fighting an uphill, if not  futile, battle in trying to keep its citizens in the dark.</p>
<p>“<a href="http://www.dailytech.com/PostOlympics+China+Turns+Its+Back+on+Internet+Censorship+Promises/article13716.htm" target="_blank">The  free flow of information in China now is huge</a>,” said Nicholas Bequelin, Asia researcher for Human Rights Watch told Daily Tech. “Jailing journalists, closing down Web sites and blocking foreign Web sites, even arresting people like [dissident writers] Hu Jia and Liu Xiaobo, it’s illusory to think that’s going to stop Chinese society from demanding more accountability, rights and more transparency.”</p>
<p>Source: <a class="titleref" rel="bookmark" href="http://www.moneymorning.com/2009/01/05/china-internet-censorship/">Internet Censorship Intensifies as China Attempts to Curb Online Vulgarity, Political Dissent</a></p>
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		<title>The View From China: The Freedom to Change Also Means There’s a Freedom To Fail</title>
		<link>http://www.contrarianprofits.com/articles/the-view-from-china-the-freedom-to-change-also-means-there%e2%80%99s-a-freedom-to-fail/1905</link>
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		<pubDate>Wed, 07 May 2008 18:59:29 +0000</pubDate>
		<dc:creator>Keith Fitz-Gerald</dc:creator>
				<category><![CDATA[International Investing]]></category>
		<category><![CDATA[china]]></category>
		<category><![CDATA[China Economy]]></category>
		<category><![CDATA[China politics]]></category>
		<category><![CDATA[China stock market]]></category>
		<category><![CDATA[investment opportunities]]></category>
		<category><![CDATA[Yangtze River Valley]]></category>

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		<description><![CDATA[<p><em><a href="http://www.moneymorning.com"  class="alinks_links">Money Morning</a></em> Investment Director Keith Fitz-Gerald is currently leading an investment trip through China, taking in that country’s culture and scenery, as well as its investment opportunities. Here is Part III of a short series detailing his observations and discoveries.</p>
<p><strong><a href="http://en.wikipedia.org/wiki/Yangtze_River">YANGTZE</a> RIVER, CHINA</strong> &#8211; The sky is a brilliant blue, the wind clean and crisp and the China where National Guide Ju Hao works resembles the landscape we’re passing &#8211; a jumbled mix of the old and new, and a backdrop to a lifestyle that’s suddenly changing much too fast.</p>
<p>&#8220;It’s dramatic,&#8221; says Hao, sweeping his hand through the air  for emphasis. &#8220;Yes …that’s definitely the word for it.&#8221;</p>
<p>The rolling hills of China’s Yangtze River valley provide the most graphic and concentrated evidence we’ve seen&#8230;</p>]]></description>
			<content:encoded><![CDATA[<p><em><a href="http://www.moneymorning.com"  class="alinks_links">Money Morning</a></em> Investment Director Keith Fitz-Gerald is currently leading an investment trip through China, taking in that country’s culture and scenery, as well as its investment opportunities. Here is Part III of a short series detailing his observations and discoveries.</p>
<p><strong><a href="http://en.wikipedia.org/wiki/Yangtze_River">YANGTZE</a> RIVER, CHINA</strong> &#8211; The sky is a brilliant blue, the wind clean and crisp and the China where National Guide Ju Hao works resembles the landscape we’re passing &#8211; a jumbled mix of the old and new, and a backdrop to a lifestyle that’s suddenly changing much too fast.</p>
<p>&#8220;It’s dramatic,&#8221; says Hao, sweeping his hand through the air  for emphasis. &#8220;Yes …that’s definitely the word for it.&#8221;</p>
<p>The rolling hills of China’s Yangtze River valley provide the most graphic and concentrated evidence we’ve seen yet of the change that is modern China.</p>
<p>As far as we can see, there are crumbling old houses built hundreds of years ago and communist-era &#8220;flats&#8221; &#8211; apartments &#8211; set low against the hills. Behind them, and set higher, are sparkling new <a href="http://www.thefreedictionary.com/ferroconcrete">ferro-concrete</a> relocation villages.</p>
<p>But there are no cars, and almost no people visible. Most of the &#8220;new villages&#8221; don’t have electricity or running water. And their residents remain farmers who head out each day to work the dramatically terraced fields that rise precipitously above the gorge.</p>
<p>It’s as if the new is fleeing the old, yet somehow remains tied to it. But it’s the red lines, and the accompanying signs that read &#8220;175 meters&#8221; that are perhaps the most sobering hint of the change that’s to come, for the lines and signage serve to warn passersby where the water will be next year when the reservoir of the massive <a href="http://en.wikipedia.org/wiki/Three_Gorges_Dam">Three Gorges Dam</a> is  finally full.</p>
<p>The surface of the water already has risen up and over the 150-meter mark. It’s odd to think that …as we move along the water’s surface …there are entire villages &#8211; even cities &#8211; far below us, down in the blackness, beyond the reach of the sun’s rays.</p>
<p>&#8220;It’s hard to imagine what’s happening in China&#8221; Hao said,  reflecting upon his life.</p>
<p>Born in a centuries-old <em><a href="http://en.wikipedia.org/wiki/Hutong">hutong</a></em> &#8211; the narrow streets or alleys that are part of life in old Beijing. This one  wasn’t too far from <a href="http://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989">Tiananmen  Square</a>, meaning he grew  up among the poorest of the poor.</p>
<p>His family shared their courtyard residence with seven other families &#8211; perhaps 35 people in all &#8211; in a space designed and built for a single family. There was no running water and only a single community bathroom that was literally just a hole in the ground.</p>
<p>&#8220;We were poor&#8221; Hao says. &#8220;Very poor.&#8221;</p>
<p>Even so, he says, &#8220;my earliest memories are very happy ones.&#8221; Hao recalls playing with other children as in the alleys as they waited for their parents to draw water each morning.</p>
<p>&#8220;We didn’t lock our doors &#8211; we didn’t have to,&#8221; says Hao. &#8220;Our dreams were simple. Any family having a bike, TV, radio or simply a sewing machine was envied.&#8221;</p>
<h3>Changes Begin</h3>
<p>The first hints of change came while Hao was in high school. Then, during his high school years Hao recalls the first glimmers of change. The <a href="http://en.wikipedia.org/wiki/Cultural_revolution">Cultural  Revolution</a> &#8211; with all its pain and chaos &#8211; finally came to an end, and true  reform was able to take hold.</p>
<p>For Hao, the most magic of moments came when he learned that the farmers were suddenly allowed to grow what they want. That meant he could put food on his family’s table. Even today, roughly two decades later, the memory of that singular event is both moving and highly personal for Hao.</p>
<p>He recalls the amazement he felt when the country’s  domestic &#8220;<a href="http://www.chinasuppliers.globalsources.com/china-suppliers/Apple-Jeans-Female.htm">apple</a>&#8221;  jeans became the Chinese <a href="http://en.wikipedia.org/wiki/Prada">Prada</a> garment of their day. Almost overnight, he says, &#8220;the green, black, gray and brown Mao jackets vanished,&#8221; only to be replaced by fashions that raised more than a few old-generation eyebrows. &#8220;Suddenly we could listen to Taiwanese pop music.&#8221;</p>
<p>&#8220;At that point,&#8221; Hao recalls today, &#8220;we knew change  was real. In more ways than one.&#8221;</p>
<p>Hao’s father, a career customs officer who spoke French, English and Chinese fluently, suddenly died, leaving Hao &#8211; as the eldest son &#8211; responsible for everything.</p>
<p>&#8220;It was …how do you say …a ‘<a href="http://www.agorafinancial.com/afrude/"  class="alinks_links">rude awakening</a>’,&#8221; Hao says,  his eyes misting a bit at the memory.</p>
<p>It was just about that time that Hao’s grandfather offered a bit of advice that Hao recalls even today: He told Hao to &#8220;eat foreign rice,&#8221; meaning that Hao should find a career that puts him squarely in front of the changes that would be opening China up to international influences. He also told Hao that he absolutely needed a college education to compete.</p>
<p>&#8220;He was a very wise man,&#8221; Hao says. &#8220;Even back then, even though he would not live to see it, he knew my best future would be to get an education and to work with the coming changes rather than [to] run from them.&#8221;</p>
<p>So that’s just what he did.</p>
<h3>Stepping Into the Future by  Stepping Out of The Past</h3>
<p>Hao graduated from high school just after the Tiananmen Square protest of 1989, and began selling newspapers, doing odd jobs, accepting manual labor positions, and working at any job that he could find.</p>
<p>Not only did Hao get into college, he earned enough to pay for his tuition and support his family at the same time. And, in doing so, he became &#8220;self-sufficient&#8221; &#8211; a concept that could not even be imagined by prior generations.</p>
<p>Hao notes that &#8220;since before I was born, Chinese have been taught to be part of a collective group. You are always part of something else. Now it’s different.&#8221;</p>
<p>&#8220;Now,&#8221; Hao observes, &#8220;we Chinese can be  individuals. And, we can have individual value.&#8221;</p>
<p>That’s something, he says that previous generations couldn’t imagine. Even now, after all the changes that have taken place, Hao says it’s a concept his mother still cannot accept or understand.</p>
<p>During college, Hao finally got his shot at &#8220;foreign rice.&#8221; He took &#8211; and passed &#8211; the National Guide License Exam. At the time, &#8220;it was harder than college entry boards and still is,&#8221; an elite examination, he notes with pride.</p>
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