The Great Firewall of China - Essay Example

The Great Firewall of China Introduction This paper deals with the contentious issue of freedom of speech as portrayed by the West and the control mechanism as implemented by the Eastern countries. This research looks at the freedom of speech on internet and the Chinese approach to curb and filter the free flow of information. As a case the internet situation in China has been discussed and the measures which the government has taken to filter out information thus negating the western concept of free flow of ideas, thoughts, beliefs and information in general (Einhorn & Keenan 2002). In addition to increasing the world's communication capabilities, the Internet has had large social and economic impact. Users perceive the Internet to be one single homogeneous network. However, it is an integrated heterogeneous network of networks which have end-to-end design architecture and transmission and control mechanisms. The fixed cost of joining the network is minimal (Paul, 2002). Several years ago, one of the main reasons that the Internet was not popular in China was the scarcity of Chinese language content on the Internet. Today, this is changing (Kennedy, 2000a). China has ten million people on the Internet today, and this number will expand to 300 million by the year 2005. Personal computer sales are expected to exceed twelve million units a year. The Internet is converging with cable television which already reaches 100 million households, and cellular telephone use will exceed 100 million units in the next three years (Hale, 2001). With this explosive growth of the Internet, the Chinese government is attempting to devise laws and regulations to oversee its development (Lapres, 2000). The Chinese government's aim in regulation and control of the Internet is to restrict access to politically harmful information and to safeguard national security. The Chinese Communist Party wants to enjoy the growth resulting from Internet technology and at the same time retain control over the free flow of information (McCarthy, 2000). Analysis China has invested over $50 billion in telecommunication and data processing hardware (Wired China. 2000). The insertion by the government of technical devices to enable governments to exercise control for political purposes or to protect the integrity of the communications system is one way which the original features of the Internet may be compromised (Paul, 2002). China, outlets for liberal political ideas have multiplied rapidly on the Internet through informal discussion groups. In a time of rapid economic and social change, China's leaders clearly view this growth trend as a threat to their political power (Rosenthal, 2000a). In 1996, China had only one law that dealt with the Internet (The Provincial Regulations Governing the Management of Chinese Computer Information Networks Connected to International Networks) issued by the State Council. In 1997, the State Council released Internet regulations for: 1. the administration of the registration of domain names for the Chinese Internet 2. implementing rules 3. computer information network, and 4. Internet security protection and management regulations. These computer link-up provisions set up a four-tier system for access to the Internet and designate the Ministry of Information Industry (Mil) as the ultimate gatekeeper for transmissions to and from the World Wide Web. This system resembles a pyramid with four tiers (Kennedy, 2000b). At the top of the pyramid is the first tier gatekeeper, the Ministry of Information Industry, which operates and controls the international gateway. The second tier of this system is made up of governmental Internet service providers known as interconnect networks. On a public and private level, access to the Internet in China is restricted to state controlled Internet service providers. The Chinese government has banned foreign investment in. these companies (Kennedy, 2000b; Anderson, 2000). Currently, there are nine Internet service providers known as interconnect networks (Clark, 2000). Internet service providers must install Internet filters which block the web sites of many western media outlets (Lee, 2001). The third tier of the pyramid consists of connected networks or private-sector Internet service providers. These Internet service providers can only link to the Internet through the four government interconnected networks. Before the third tier Internet service providers can offer services to users, they must obtain a linkup business permit from one of the four governmental Internet service providers (McCarthy 2000; Kennedy 2000b). The fourth tier of the Internet system in China is composed of individuals, legal persons or organizations. The Chinese government fears that the unrestricted spread of ideas and knowledge will subvert its one party dictatorship (McCarthy, 2000; Pembera, 1999; Kennedy, 2000b). The Chinese government has implemented strict measures to regulate the Internet in order to maintain control and cope with its fears. These measures include: 1. domain name registration, 2. e-commerce taxation, 3. encryption, 4. Internet policing, 5. monitoring web media, and 6. state secrets regulation (Lo and Everett, 2001; Kennedy, 2000a). The global Internet market depends on an infrastructure of national domain registrars and network organizations. China has a single registrar for ".cn" domains, the China Internet Information Center (Anderson, 2000). The China Bureau of Commercial and Industrial Administration and Management is working with the China National Network Information Center and has compiled a list of famous Chinese marks to monitor any attempt to take any domain names containing such trademarks (Lo and Everett, 2001; Kennedy, 2000a). The registration of domain names in China is treated like trademarks and the regulations are virtually copied from the Chinese Trademark Law, Article 8. Article 11 of the Domain Name Provision Measures forbids the registration and use of the following domain names: 1. Words like China, Chinese, (.cn), or national unless approved; 2. Common names of industries or commodities; 3. Trademarks or trade names registered under . Chinese law; 4. Names harmful to state, society or public interest (Wang, 2001). The Chinese government has also been tightening control of the remittance of foreign currency overseas. As importers are required to present full documentation when settling imports of goods, foreign e-commerce companies making sales to China should ensure that their customers have adequate documentation and are able to secure authority to remit payment overseas. Failure to do so may lead to payment being delayed. Chinese companies paying fees overseas must obtain a tax clearance in the form of either an exemption certificate or a tax receipt before they can proceed with remittance. In the case of a software fee payable for downloading through the Internet, the customer most likely would be required to withhold a 10% tax. Also, the customs duty and value added tax implications of importing software by downloading it from the Internet may also require a payment of a software fee or royalty to a Chinese company (Law and Lam, 2001). The Chinese government has required foreign firms to reveal one of their most guarded secrets, which is the software used to protect sensitive data transfers over the Internet. Both foreign and Chinese companies must register the type of commercial encryption software they use, provide details of employees who use the software, the locations of the computers they use, their e-mail addresses, and telephone numbers which will make it easier for the Chinese government to monitor personal and commercial use of the Internet. Also, the regulations ban Chinese companies from buying products containing foreign designed encryption software and organizations or individuals from selling foreign commercial encryption products. The encryption regulations can apply to just about anything that transmits sensitive digital information including cell phones, Internet browsers and e-mail software. Diplomatic missions are exempted (Forney, 2000b). Domestic control is achieved by bringing the supply and use of encryption products under an authorization scheme. Authorizations are denied or granted under certain conditions such as the strength of the encryption product and the Chinese government's security needs. All imported encryption products must gain approval from the China National Commission on Encryption Code Regulations. Once a product is sold to a registered user, it cannot be transferred. Also, foreign companies or individuals within China who use encryption products must report them to the China National Commission on Encryption Code Regulations and obtain approval. Discarded or destroyed encryption products have to be put on file at the China National Commission on Encryption Code Regulations. Penalties for violating the regulations range from confiscation of the encrypted product, fines, to China's criminal law statutes. China's greatest concern driving the encryption technology is national security (Kennedy, 2000a). China's encryption laws and regulations define commercial encryption as encryption technology and products used for encryption based protection or security of information which does not have state content. The laws and regulations provide that commercial encryption technology is a state secret and is therefore regulated by them. These rules have raised concerns among foreign investors over China's Internet policy. Although, the clarification letter has lessened some concerns, the laws and regulations remain in effect. This creates the potential for close, invasive supervision and control by the Chinese government for all Internet activities in China (Wang, 2001). Microsoft Corporation will include Chinese made encryption software inside its packages of its Windows operating system sold in China. Microsoft has announced that the encryption software, written by state owned China National Computer Software and Technology Service Corporation (CS & S), would add a layer of security for computer users beyond what Windows already provides. Microsoft has taken the unusual step in providing CS &S with parts of Window's closely guarded source code in response to rumors in Chinese Internet chat rooms and published in Chinese state newspapers that Windows opens up computers to spies, a back-door way to get information from the computer. The move by Microsoft to include CS & S encryption software in its Windows 2000 and Windows XP products sold in China has occurred at a time when rival Linux operating system is trying to gain market share in China. Customers in China who choose to install the encryption software will also need to buy a security card separately from CC & S in order to activate the product (Pottinger, 2001). The Chinese government's State Bureau of Secrecy promulgated the Secrecy Regulations and established the Internet police force. State secrets are broadly defined to include confidential information in areas such as national defense, foreign affairs, the national economy, social development and technology. These regulations include all activities on the Internet which include e-mail, chat rooms, newsgroups, discussion forums, ecommerce, bulletin boards, etc. A state secret in China is not necessarily classified information but can include almost any news not explicitly sanctioned for release by the government. The Chinese State Secrets Bureau has been implemented to combat Internet crimes ranging from pornography to state secrets which include military, diplomatic and economic information. All local Internet content providers are now required to continuously censor the content of their web pages and delete politically sensitive material. Rather than the Internet providing a free flow of information and democracy to China, these uses of Internet technology are resulting in more control by the Chinese government (Wired China. 2000; Lapres, 2000; Kennedy, 2000a; Menon, 2000). Businesses should know that China's public security organization has the authority to pursue individuals and organizations using the web to spread pornography, to commit an array of political offenses, which are not always defined in Chinese law, or to commit Internet specific offenses such as harming other information network and Internet security, protection, and management regulations. No unit or individual in China may use the Internet to create, replicate, retrieve, or transmit information that incites violations of the constitution or laws, or resistance to the implementation of administrative regulations that: I. incites the overthrow of the government or the socialist system, 2. incites division of the country, or otherwise harms national unification, 3. incites hatred or discrimination among nationalities or otherwise harms the unity or the nationalities, 4. makes falsehoods, distorts the truth, spreads rumors, or disrupts social order, 5. promotes feudal superstitions, sexually suggestive material, gambling, violence, or murder, 6. promotes terrorism, encourages criminal activity, openly insults other people, or distorts the truth for the purpose of slander, or 7. injures the reputation of state organs (Lapres, 2000). Internet users in China must obtain proper approval from the Ministry of Public Security before using computer networks or network resources, and must: 1. refrain from entering computer information networks or using the resources of the network without permission, 2. refrain from changing network functions or adding or deleting information without permission, 3. refrain from adding to, deleting, or altering the information stored, processed or transmitted through the network without prior permission, 4. refrain from deliberately creating or transmitting (computer) viruses, and 5. refrain from all activities that harm the network (Lapres, 2000). China's rapidly growing Internet businesses have attracted foreign companies that have the technological and financial resources to enter the market. The current slow network connections coupled with rising expenses and price controls, legal and regulatory uncertainty, and competition from the telephone monopoly are among the most damaging obstacles. The opinion of many foreign investors is that the Chinese language may someday be the medium of communication for the largest number of Internet users worldwide offsetting the extensive risk (Anderson, 2000). The Chinese State Council Document No. 292 forces Internet companies to register with the government which will pose problems for those with significant foreign investors. The Chinese companies most directly affected are portals linking users with Internet content. Most of these companies already censor themselves. The regulations require Internet companies to register with the Minister of Information Industry. The Chinese government has yet to clarify whether the large foreign investments many Chinese firms have accepted are legal, and companies that register could be punished retroactively for violating investment guidelines (Forney, 2000b). Conclusion The Internet has transformed the economically advanced countries of the world into an e-commerce environment. There are over thirty million websites on the World Wide Web. By 1993 a fiber optic grid matrix had been laid in China. The Chinese government controls the international gateway which connects China to the World Wide Web. The Chinese government controls, censors and monitors all aspects of their Internet system (Salkever 2002). There is also unclear delineation of jurisdictions over encryption, domain names, and access questions. This absolute control leads to increased risk for foreign firms doing e-commerce business in China. Foreign companies doing e-commerce business in China will be competing in an environment based on licenses and strong governmental legal and regulatory control which censors and monitors all Internet activity (Einhorn & Keenan 2002). Unclear delineation of jurisdictions over encryption, domain names, access, and other technological issues, increased governmental control leads to a environment where the future development of e-commerce business in China by foreign firms will be risky. Works Cited Anderson, Stephen J. (2000) China's widening web. The China Business Review, pp. 20-24. Clark, Duncan (2000) China reluctant to buy in to e-commerce. Telecommunications. International Edition, v. 34, p.141-144. Einhorn, Bruce, Keenan, Faith, (2002) The Great Firewall of China.  Business Week, 00077135, 9/23/2002, Issue 3800 Forney, Matt, (2000a) China's rules on the internet yet to play out. The Wall Street Journal. eastern edition, p. A23. 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