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Edition: U.S. Article Comments (1) Slideshow Save Email Print Reprints Most Popular Most Shared Dozens of U.N. personnel killed by Haiti quake 14 Jan 2010 Banks, experts eye possible ways around Obama fee 14 Jan 2010 Desperate Haitians await foreign disaster relief | Video 2:16am EST Factbox: White House, unions agree on health insurance tax 14 Jan 2010 Who's running Haiti? No one, say the people | Video 14 Jan 2010 New Fellowship Fund for Graduate MBA Students at UC Irvine Established to Honor Leading Businessman and Tech Coast Angels Founder, Luis Villalobos PR Newswire 03 Nov 2009 Desperate Haitians await foreign disaster relief | Video 2:16am EST UPDATE 1-Morris Publishing to file prepackaged bankruptcy 13 Jan 2010 Haiti aid groups ask companies for cash, not goods 14 Jan 2010 Cadbury fires final defense amid Hershey bid doubts 14 Jan 2010 China says ways to resolve Google issue, U.S. cautious Ben Blanchard and Aileen Wang BEIJING Fri Jan 15, 2010 2:24am EST < 1 / 3 > View Full Size BEIJING (Reuters) - China on Friday sought to play down a threat by Google Inc to quit the country on hacking and censorship concerns, saying any decision by the Internet search giant would not affect U.S. trade ties. Technology | Media | China The United States said it was too soon to tell how economic ties would be affected, but added free information flow was crucial to China's maturing economy. A spokesman for China's Commerce Ministry said there were many ways to resolve the Google issue, but repeated that all foreign companies, Google included, must abide by Chinese laws. "Any decision made by Google will not affect Sino-U.S. trade and economic relations, as the two sides have many ways to communicate and negotiate with each other," spokesman Yao Jian told a regular news briefing in Beijing. "We are confident about developing healthy trade and economic ties with the United States." The issue risks becoming another irritant in China's relationship with the United States, already strained by arguments over the Chinese currency's exchange rate, trade protectionism and U.S. arms sales to Taiwan. The United States has backed Google's decision to no longer support China's censoring of Internet searches, and has raised the issue at a diplomatic level. "It seems to me that the principles that Google is trying to uphold are not just important in a moral or rights framework, but are also of very considerable economic importance," senior White House economic adviser Lawrence Summers said. "I think it's too early to assess what all of the effects will be," he added when asked if the dispute would mark a turning point in the U.S. economic relationship with China. Playing down the concerns raised by rival Google Inc, Microsoft Corp said it had no plan to pull out of China. "I don't understand how that helps anything. I don't understand how that helps us and I don't understand how that helps China," said Steve Ballmer, CEO of the world's largest software maker [ID:nN14165244]. Microsoft has high hopes for its Bing Internet search engine in China, which has only a small share of the market, but could benefit if Google, the No. 2 player behind dominating local rival Baidu Inc, pulls out. INTERNET FREEDOM Ballmer's comments run counter to broad political support for Google. U.S. Deputy Assistant Secretary for East Asian and Pacific Affairs David Shear met a Chinese diplomat in Washington on Thursday to seek an explanation about the cyber-attacks and censorship, State Department spokesman P.J. Crowley said. "The incident raises questions about both Internet freedom and the security of the Internet in China," Crowley said. "We have serious concerns about this and its ramifications, and we're going to continue our dialogue with China on these and other kinds of issues," he said. A senior U.S. official said Shear received no reply from the Chinese on the Google case. China has defended its censorship, and Chinese media are stressing that foreigners must abide by Chinese laws. "China is a sovereign country, not a 19th century (colonial) concession, and foreign businesses don't have legal extra-territoriality," Jin Canrong, a China-U.S. relations scholar at Beijing's Renmin University, told the Global Times. "To want to do business in China while remaining beyond the bounds of Chinese law is to misread 21st century China." Most of the filters on Google.cn were still in place on Friday, though controls over some searches, including the June 4, 1989 Tiananmen crackdown, appear to have been loosened. The spat has ignited heated debate among Internet users in China, with some viewing it in strongly nationalist terms and others lamenting the company's possible passing. "I feel I can no longer breath in this China which is more and more controlling. We are only 50 meters away from North Korea and Iran," wrote "Budabuxiangshi" on the Global Times' website (www.huanqiu.com) FLAW IN MICROSOFT Google said on Tuesday that in mid-December it detected an attack on its corporate infrastructure originating from China that resulted in the theft of its intellectual property. It said that more than 20 other companies had been infiltrated, although cyber experts say 34 firms were attacked. Security firm McAfee Inc said that the recent cyber-attacks on Google and other businesses exploited a previously unknown flaw in Microsoft Corp's Internet Explorer browser. Microsoft later sent out an advisory to help users mitigate the problem. It is still working on a patch that would solve it. But Microsoft's CEO downplayed the hacking attacks. "There are attacks every day. I don't think there was anything unusual, so I don't understand," Ballmer said. "We're attacked every day from all parts of the world and I think everybody else is too. We didn't see anything out of the ordinary." (Additional reporting by Chris Buckley, Lucy Hornby, Liu Zhen and Huang Yan, Melanie Lee in Shanghai, Jeff Mason and Paul Eckert in Washington and Jim Finkle and Bill Rigby in Boston) Technology Media China Comments See All Comments (1) | Post Comment Jan 15, 2010 Does Chinese law stipulate allowing the Chinese government to hack corporate secrets and customer accounts? OuterLimits Report As Abusive See All Comments (1) Add a Comment More from Reuters Obama ally Reid in danger of losing re-election bid WASHINGTON (Reuters) - U.S. Senate Majority Leader Harry Reid may pay the ultimate political price for championing President Barack Obama's liberal agenda: He could lose his seat back home in Nevada. Intel beats Street view, bodes well for tech rebound | Video Japan's Shiseido agrees $1.7 billion U.S. cosmetics buy China says ways to resolve Google issue, U.S. cautious Citi 2009 bonuses similar to 2008 levels JAL draws on emergency funds as bankruptcy looms » More Top News SPECIAL REPORT: In the company of Narcos Members of Mexico's drug cartel call themselves "The Company" -- for good reason, given they run some of the most lucrative criminal enterprises ever seen. Full Article Timeline: The war on drugs in LatAm Factbox: Mexico's top drug traffickers Exclusive: Qaeda linked to air network MEXICO Anger grows in quake-hit Haiti Angry survivors set up roadblocks with corpses to demand quicker relief efforts after the massive quake killed tens of thousands and left countless others homeless and desperate for aid. Full Article | Video Who's running Haiti? No one, people say Live coverage of the Haiti earthquake Alertnet: Aid agency news feed Natural Disasters © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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