The China Dilemma for U.S. Firms: Comply, Resist, or Leave?
Author: Prof. Jim Heskett, Harvard Business School, in Working Knowledge [Harvard Business School publication], Published on: 6 March 2006
...U.S.-based firms are confronting a dilemma that may be even more complex than that faced by General Motors and others during apartheid... For companies like Cisco Systems and Microsoft, the question has greater political implications-whether or not to continue selling hardware or software that filters communications or facilitates their monitoring to a government that is likely to use it for both purposes. For Yahoo and Google, among others, it gets even more complex. It is whether to: (1) comply with Chinese requirements that they make available information regarding individuals using their Internet sites that could endanger users' welfare, (2) resist such license requirements, or (3) cease doing business in China.