Wednesday, March 08, 2006 9:15 PM
by
will
Yahoo's Yang on operating in China
A week after Google's Sergey Brin
went on the record
about his company's involvement in China during Google's recent analyst
conference, Yahoo co-founder Jerry Yang has done the same. Like Brin,
Yang has chosen a professionally oriented forum --in this case the
Thomas Weisel Partners Internet and Telecom Conference in San
Francisco-- to address the issue. And, like Brin, he has addressed it
in a fairly cursory fashion that stays within the boundaries drawn by
the companies during the congressional hearings convened last month.
CNET reports:
Yahoo executives feel "horrible" about political arrests of
Internet users in China but believe it's better to operate in that
market and cooperate with authorities than not be there at all, Yahoo
co-founder Jerry Yang said Wednesday.
"It is more important for us to participate, not only for economic
reasons, but to be able to" help shape where the industry is going,
Yang said during a question-and-answer session at the Thomas Weisel
Partners Internet and Telecom Conference in San Francisco.
"You have to balance the risk of not participating," he said. "And
people don't realize that being in the market every day there, and
being on the ground, we are seeing changes, on the whole, for the
positive."
Yahoo and the other top U.S.-based search engines have come under fire
for their practice of cooperating with the Chinese government in
censoring information online. Yahoo has been accused of providing
evidence to Chinese authorities that led to the imprisonment of two
Chinese Internet users, including a journalist who was sentenced to 10
years in prison.
The arrests "are never things you go home and feel good about," Yang
said. "We feel horrible about that...We have no way of preventing that
beforehand....If you want to do business there you have to comply."
Later in the day, during a question-and-answer session at the JMP
Securities Research Conference, he reiterated many of the same
statements and added that Yahoo executives have raised the issue with
the Chinese government. "We feel the government needs to work on it as
a trade issue."
Internet companies have to deal with regulations that affect their
business in other countries as well, even in the U.S., which has the
Patriot Act, he said. "There is no 100 percent clean, no matter what
country you're talking about."
I
wrote in February
that it was going to be important to see some leadership from the top
of the companies involved. While I am pleased to see that both Brin and
Yang have gone on the record about their China operations, I am
disappointed by the lack of depth in the comments. I realize that both
executives are probably following paths tightly circumscribed by their
general counsels and communications directors (and I'd probably be
counseling something similar if I was in the position of providing such
guidance, I was aware that the company's comments were being
scrutinized in both the US and China, and my job was on the line). I
also think that, in the current climate, it is very dangerous to equate
US practices with Chinese ones (as egregious as I think some current US
practices are). There may be no 100% clean country, but there are some
pretty clear divisions which Yang should beware of invoking as part of
his defense. Note that I don't have the full context for that quote,
but neither does any other reader of this story, not all of whom will
approach it in as analytical a framework as I do.
In the end, I see little new in the statements made so far, and that
disappoints the industry observer/China resident/American in me (which
descriptor may put me in a smallish crowd). In future, perhaps when the
winds are not blowing so hot over this issue, I hope one of these
executives sits down with a good journalist for an in-depth discussion
on these issues, including the role companies like Yahoo and Google
should (or shouldn't) play in advancing American values and human
rights, the relationship between technology and human rights, the
considerations they weigh when operating in other countries, and the
challenges yet to come as the industry continues to develop. That would
be an article worth reading.