CASE STUDY:Analysis of the Chinese resistance to internet giants like Google and Facebook.

Executive Summary Internet censorship in China is among the most stringent in the world. The government blocks Web sites that discuss the Dalai Lama, the 1989 crackdown on Tiananmen Square protesters, Falun Gong, the banned spiritual movement, and other Internet sites.The only social sites or search engines working in China now are home-grown ones-notably Baidu,Sina & Weibo. As revolts began to ricochet through the Middle East and North Africa in 2011, and homegrown efforts to organize protests began to circulate on the Internet, the Chinese government has tightened its grip on electronic communications, and appeared to be more determined than ever to police cellphone calls, electronic messages, e-mail and access to the Internet in order to smother any hint of antigovernment Introduction The governments computers intercept incoming data and compare it against an ever-changing list of banned keywords or Web sites, screening out even more information. The

motive is often obvious: Since late 2010, the censors have prevented Google searches of the English word freedom. Study Web sites in China are required to employ people who monitor and delete objectionable content; tens of thousands of others are paid to "guide" bulletin board Web exchanges in the government's favor. Chinas censorship machine has been operating ever more efficiently since mid-2008, and restrictions once viewed as temporary like bans on Facebook, YouTube and Twitter are now considered permanent. Government-friendly alternatives have sprung and developed a following.

Oversight increased markedly in December 2008 after Charter 08, a pro-democracy movement led by highly regarded intellectuals, released an online petition calling for an end to the Communist Party's monopoly on power. The group's Web site, bulldog.com, was shut down.Government censors began a campaign, ostensibly against Internet pornography and other forms of deviance. Soon the government effort had shut down more than 1,900 Web sites and 250 blogs -- not only overtly pornographic sites, but also online discussion forums, instant-message groups and even cellphone text messages in which political and other sensitive issues were broached.In 2009, the government pushed -- and

ultimately backed off from -- a rule that would have required the installation of a new software program called "Green Dam-Youth Escort'' on all new Chinese-made computers. The software would effectively monitor a user's every move. After strong resistance at home and abroad, however, China indefinitely delayed enforcement of the rule.

Despite building one of the most technically sophisticated Internet firewalls, China still has a community of Web users that is among the most dynamic in the world. There are more than 70 million bloggers in China, and in January 2009, officials proudly announced that the number of Internet users had approached 300 million, more than in any other country.In addition to its massive firewall and intrusive software, the government employs thousands of paid commentators who pose as ordinary Web users to counter criticism of the government. Known derisively as "50 Cent Party" members, these shapers of public opinion are often paid 50 Chinese cents a posting.

Analysis From the above,we can conclude that Chinas resistance to internet giants like Facebook may prove costly for it in the long run.Also,does Facebook even need China? Conclusions and Recommendations

Chinas huge online population,incidently larger than even the United States makes it a big market for Facebook,Twitter or even Google.However,Chinas communist government policies is a big hurdle. For,these companies its a Catch-22 situation.Whether to compromise its ethics and tap the huge online Chinese population or to stand its face up till that it isnt if only Facebook needs China its the other way round as well in the current global economic and political climate. References and Appendices www.wikipedia.com www.wallstreetjournal.com

-Sushman Das, BA Economics (H), Ph.No-8376886023