Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

China: The Land of the InterNot


Censorship abroad foils US tech companies.

You'd think that China, with its more than 1.3 billion potential consumers, would be a great place for US companies to do business.

You might also think that China, home to more wired citizens than anywhere else on the planet, would look particularly delicious to tech companies like Microsoft (MSFT), Yahoo (YHOO), and Apple (AAPL).

But the Chinese government has proved you wrong.

Starting July 1, PC manufacturers wishing to sell computers in China will be required to preinstall software that will block all "vulgar" sites. The program, called Green Dam, would block users from viewing pornography, information about Tibet, articles about the history of pro-democratic protests, and pretty much anything else the government doesn't like.

Last year, 40 million PCs were sold in China. For computer manufacturers, the task of installing chips in such a large quantity of machines has been described as next to impossible.

In addition to this latest swipe at freedom of speech, the Chinese government already censors hundreds of websites, many of which are flagship brands for US companies. Google's (GOOG) YouTube has long clamored outside the Great Firewall of China. Last week, Flickr, Hotmail and Twitter all went dark on the sixtieth anniversary of the Tiananmen Square massacre.

US companies may naturally feel deterred from doing business in such a compromised market. But then again, China's got 1.3 billion reasons to convince those companies otherwise.

Join Hoofy and Boo for a closer look at the challenge of doing business in the land of the InterNot.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos