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Journalists, fans, and support staff betrayed by false "open internet" pledge

A secret order to foreign-owned Chinese hotels compels them to spy on guests during the Olympic Games, according to a memo revealed Tuesday by U.S. Senator Sam Brownback.

Brownback, a republican representing Kansas, said he received a document issued by the Chinese Public Security bureau, which orders hotels to install spying equipment on their internet connections and threatens owners with “severe retaliation” – including the possibility of losing their operating licenses – should they fail to comply.

“These hotels are justifiably outraged by this order,” said Brownback at a news conference Tuesday, noting that it forces them into the “awkward position” of having to “craft pop-up messages” informing guests of their loss of privacy.

Brownback said he received a copy of the original document, translated from Chinese, from attorneys representing two different “foreign-owned” hotel chains. The companies want to remain anonymous so that they don’t face further reprisal. Several other international hotel chains confirmed the order.

An AP report said the Chinese embassy was unavailable for comment.

According to the memo, hotels were told that “all hotel rooms and offices” are considered subject to “on-site or remote technical monitoring at all times.”

With little more than a week remaining before the 2008 Summer Olympics begin in Beijing, Chinese hotel owners appear to have little choice. Despite their outrage, hotel companies are more concerned about the long-term repercussions of non-compliance – failure to obey could place an entire company’s operations in jeopardy, potentially locking them out of a lucrative, growing Chinese market.

Meanwhile, athletes and participants staying at the Olympic Village have a unique set of woes for their internet access: an IT contractor recently leaked a list of rates for DSL service charged by BOCOG (Beijing Organizing Committee of the 2008 Olympic Games), with the cheapest option being a 512/512 kilobit line available for 11,700 RMB ($1716.05 USD). 

“I just can't believe that not only do I have to deal with the Great Firewall of China, but also pay through the nose to use it!” wrote the anonymous contractor.

According to Australian newspaper The Age, the International Olympic Committee issued a formal apology Wednesday for “misleading” the world’s press about the China’s “open internet” pledge. Senior IOC member Kevan Gosper, who originally delivered the promise of “unfettered freedom to report in China,” said he was unaware of the apparently backroom negotiations with Chinese censors, which will keep a number of “sensitive sites” blocked from access.

Age reporters said they were unable to access a number of sites involving human rights discussions, Tibet, and the Falun Gong, with merely intermittent access to a larger portfolio of websites including the New York Times, BBC China, al-Jazeera, Radio Free Asia, and Taiwanese newspapers.

 BOCOG spokesman Sun Weide said that China promised journalists that they would “be able to use the internet for their work during the Olympic Games. So we have given them sufficient access to do that.”

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RE: And how is this a surprise?
By Logica on 7/31/2008 10:28:50 AM , Rating: 2
So what exactly are you going to do? Nothing is the bottom line, because you can't do a thing. Do you really think antagonising the Chinese is in any way, shape or form a productive idea? Sure you can show your disgust or disagreement with what is being done but in all honesty, who cares what you think?

The last country that did a rapid transition from communism to democracy nearly had its economy crash and burn and that was Russia. China just being cautious is not exactly a bad idea. The Yanks are probably just bitter at the fact that they can no longer effectively compete like they used to in the global economy with so many jobs moving over to China.

Also, this idiotic talk about China allowing their currency to freely float. Well, is it REALLY surpising that China don't want to? Wait, it won't benefit them in the least and only the Americans. Then why do it? Geez, sometimes I think some people here have wood between their ears. The US would do exactly the same if the situations were reversed in this case.

RE: And how is this a surprise?
By Master Kenobi on 7/31/2008 10:32:40 AM , Rating: 2
It would complicate the Chinese economy if they allowed their currency to float. This way they don't really need to handle that side of economics. This way they also guarantee an export market. Resolutions from the U.S. side would be to throw up heavy tariffs to artificially raise the prices of chinese imports. Of course doing this would cause prices in the U.S. to skyrocket in the short term.

RE: And how is this a surprise?
By jconan on 8/1/2008 1:06:36 AM , Rating: 2
What does the we know about the economy? We were bailed out by importing cheap products and now look at the US economy? It's in a recession because of 2 main issues the housing market and the gas price caused by artificial tampering of the federal interest rates and denial of infinite gas supply thinking that US is the only gas user and no one else. As a whole we should definitely fix the problems here before being a hypocrite and talking trash about other countries.

RE: And how is this a surprise?
By Ringold on 8/1/2008 1:19:16 AM , Rating: 2
by artificial tampering of the federal interest rates

Thats part of it... but oil has become more dear relative to other goods in every currency I'm aware of, including the inflationphobic Euro-zone. There is no escaping the impact of a couple billion people experiencing growing prosperity and demanding more energy.

But if you think about it, your two main issues that you indicate are one in the same. Both, one could argue, were caused by lax monetary policy.

RE: And how is this a surprise?
By FITCamaro on 7/31/2008 10:57:13 AM , Rating: 2
China's undervalued currency isn't just hurting America. Why would any corporation set up shop in Europe either considering the extremely high corporate taxes when they can go to China? I'm sure BMW and Mercedes would love to move some of their manufacturing to China. But the local governments would likely have a sh*tfit.

RE: And how is this a surprise?
By HsiKai on 7/31/2008 4:25:44 PM , Rating: 2
No, they wouldn't. Also, quite a few Mercedes are built in Mexico so transportation costs to the North American remain low. (This is true of Toyota keeping most or all of their North American factories in NA, as well.)

Also, with respect to undervaluing their currency, who do you think gave them that idea? It sure wouldn't be the west subjugating their people and keeping their labor rates artificially low. It wouldn't be American Big Business threatening to take their business to Malaysia, Indonesia, or India where there are an equal number of people willing to work for such little pay.

If you can't afford to go to Europe you might try going to Jamaica. The last time I was there the Jamaican Dollar was worth half that of the U.S. Dollar and due to a large part of their economy being based on tourism they, as a society, were happy to undervalue their Dollar for tourists. This is true of many countries when you go to exchange money at financial institutions, they will typically give you a "discount" or more for your money that would be the normal value so that you will feel that you can spend more while abroad. Unfortunately this has led to the Jamaican people undervaluing it below that in some cases.

So please do not think that the Chinese are playing unfair. Undervaluing their currency, if it's best for them, is a fine economic, and mainly political, strategy the same way tariffs on foreign products or embargoes are perfectly acceptable business practices.

RE: And how is this a surprise?
By HsiKai on 7/31/2008 5:44:06 PM , Rating: 2
Grammar check: That first sentence should read "to the North American market" or "to North America." I guess I couldn't make up my mind.

By codeoferics on 8/1/2008 3:14:47 AM , Rating: 2
I don't quite understand everyone ranting off about the Chinese currency...
Aug 2007: Chinese Yuan = 0.1322 USD
Aug 2008: Chinese Yuan = 0.146 USD

That's an increase of more than 10% in a year between the two world currencies which a significant portion of the world's trading works off of. From what I understand they are letting the Yuan rise in value gradually to market value. If they suddenly unpegged it overnight and it rises like mad in a short period of time, imagine the chaos for importers and exporters (some would easily go bankrupt from cash flow problems immediately).

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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