US-China Commission Report - Fatal System Error

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90. U.S.-China Economic and Security Review Commission, Hearing on Access to
Information and Media Control in the People’s Republic of China, written testimony
of Gilbert Kaplan, June 18, 2008.
91. James Politi and Richard Waters, ‘‘Google and Yahoo Tread Carefully in Beijing
Row,’’ Financial Times, August 21 2008.
92. U.S. Senate Judiciary Committee, Subcommittee on Human Rights and the
Law, ‘‘Global Internet Freedom: Corporate Responsibility and the Rule of Law,’’ testimony
by industry representatives, May 20, 2008.
93. The letters were obtained by the Los Angeles Times and posted online. They
are available at Google letter: http://latimesblogs.latimes.com/technology/files/Google
CodeLetter2.pdf; Yahoo! letter: http://latimesblogs.latimes.com/technology/files/Yahoo
CodeLetter1.pdf; Microsoft letter: http://latimesblogs.latimes.com/technology/files/MicrosoftCodeLetter2.pdf.
94. James Politi and Richard Waters, ‘‘Google and Yahoo Tread Carefully in Beijing
Row,’’ Financial Times, August 21, 2008.
95. Kevin Dempsey, Esq., telephone interview with Commission staff, August 6,
2008; and research performed by Commission staff based on China’s WTO accession
documents. The list of China’s WTO accession documents may be found at http://
www. wto.org/english/thewtole/accle/completeaccle.htm#chn.
96. Kevin Dempsey, Esq., telephone interview with Commission staff, August 6,
2008.
97. General Agreement on Trade in Services, articles XIV and XIV bis, pp. 294–
295. http://www.wto.org/english/docsle/legalle/26-gats.pdf.
98. These articles, however, are still subject to the ‘‘national treatment’’ clause,
meaning that if applied, they must apply to both foreign and domestic firms. As an
example, Mr. Dempsey cited a 2005 WTO appellate body ruling, in which U.S. prohibitions
against Internet gambling services were challenged. The United States had
invoked the public morals clause of GATS, but Antigua (where many online casinos
are based) challenged the U.S. position on the grounds that Internet betting on
horse racing was still legal in some states within the United States. The WTO appellate
body found in Antigua’s favor, on the grounds that allowing U.S. domestic
firms to manage Internet betting, while simultaneously prohibiting foreign-managed
Internet gambling services, violated the national treatment principle.