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		<title>Internet in China: Force for change?</title>
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		<description><![CDATA[The following post is an unedited essay I prepared for a subject on globalisation and China last semester, and investigates the role of the Internet particularly as an instrument of social change. Perhaps surprisingly, I argue that it is a reflective, rather than disruptive, utility in this particular social context. The new technologies will bring [...]]]></description>
			<content:encoded><![CDATA[<p>The following post is an unedited essay I prepared for a subject on globalisation and China last semester, and investigates the role of the Internet particularly as an instrument of social change. Perhaps surprisingly, I argue that it is a reflective, rather than disruptive, utility in this particular social context.</p>
<hr />
<blockquote><p>The new technologies will bring “every individual …  into immediate and effortless communication with every other,” “practically  obliterate” political geography, and make free trade universal. Thanks to  technological advance, “there [are] no longer any foreigners,” and we can look  forward to “the gradual adoption of a common language”.<a name="_ftnref1"></a></p>
<p>—1893  article</p></blockquote>
<p>Communication technologies have  long been perceived as harbingers of significant transformation in society,  from the tumult of 15th C. Europe in the wake of religious and  political revolution enabled by Gutenberg’s invention to the domestic  telegraphic and telephonic innovations of the 1800s. As boundaries between  countries have, with increased access to Information and Communications  Technology (ICT) beyond the elite, begun to blur, proletarian access to such  technologies has commensurately grown apace. Despite common <em>access</em> to such technologies, however,  their <em>utility</em> for grassroots  activism, the devolution of state boundaries, developing global commerce, and  advancing political autonomy remains in question. Considering China,  particularly, with over one-fifth of its population having access to such  technologies based on official estimates<a name="_ftnref2"></a>,  the question of the utility of these technologies, particularly in the realm of  their impact upon the social and political psyche of China, is an important  one.</p>
<p>Most commonly levelled critiques  against the Chinese Government in the field of Internet politics gravitate  around the issue of Internet censorship. In a global context, this has  ramifications for a variety of organisations, both TNC/MNCs and governments.  The Golden Shield Project (金盾工程), it is often argued, is both  facilitated by the complicity of and provides benefit to a variety of ICT  vendors in western democracies. In the United States particularly, vendors  including Cisco Networks, Microsoft and service providers Google and Yahoo!  have all been dragged before various inquiries into the foreign practices of  the global subsidiaries and branches of such businesses. Although various US export  restrictions on some security products (high grade encryption being foremost  amongst these) remain, export constraints apply principally to countries with which  the US does not have diplomatic relations or where it is presently engaged in  military conflict. China fits neither criteria, and her internet practices,  although considered oppressive by some, do not even depend particularly upon any  advanced encryption technologies: indeed, such technologies are often used for  the circumvention of controls.</p>
<p>For all its faults, control of the  Chinese internet is an imprecise science, exemplified in former-US President  Clinton’s description of such attempts as like “trying to nail Jello to a wall”<a name="_ftnref3"></a>.  Other media, limited by a raft of controls imposed by the State Administration  of Radio, Film, and Television (SARFT) and the General Administration of Press  and Publication (GAPP), are particularly controllable in a manner the Internet  is not. While both SARFT and GAPP have attempted to assert control over the  Internet in a variety of forms, GAPP’s online authority is limited in scope  compared to the tight control it retains over periodicals and book publishing  through ISSN/ISBN issuance, while SARFT’s March 30 notice, “广电总局关于加强互联网视听节目内容管理的通知”<a name="_ftnref4"></a>,  is concerned only with ‘audio-visual programs’ published through Chinese video  sharing websites. While the SARFT notice singles out videos published by 拍客  (‘vodcaster’, or video netizen reporter), it does not target bloggers or any  non-visual reporting. Particularly the permit system in part 4 of the notice,  essentially an extension of existing SARFT regulations over film/TV serialised  content, raised the ire of a number of video-on-demand websites. For the average  user, however, this appears to have had little impact. While various  administrations may attempt to challenge or even change the nature of Internet  interactions, the Internet shows equal resilience and, indeed, presents an  inverse challenge to such established bodies. Despite this, however, the  prolonged censorship of the internet under the direction of the Ministry of  Public Security’s Golden Shield Project, particularly in conjunction with  various MIIT directives to service providers, has resulted in what is  effectively a culture of self-censorship of the Chinese Internet.</p>
<p>However, there are many issues,  often neglected in the wake of clamorous discussion surrounding the censorship  issue, besides that of <em>access</em>. Particularly,  when considering the Internet as an instrument for disrupting the official  discourse and challenging or transforming societal conventions, it is important  to consider usage patterns in online activities. China is predominantly  interested in very different activities to a wider sample of the online  community. While considering the issue of utility, it is worth noting that the  top Internet applications in China, namely Music, News and Instant Messaging  (IM) activities, constitute entertainment related pursuits, as opposed to more commercially  motivated Internet activities of much of the rest of the world.<a name="_ftnref5"></a></p>
<p>This usage disparity is reflective  of other consumer attitudes within China. It does not shape them. The  dependence of global online commerce upon a consumer-credit based systems,  specifically, third party brokers with broad networks and the capacity to  instantaneously authorise and/or decline transactions based on verification of  available credit (in Mainland PRC, the only domestic interbank network  facilitating this is China UnionPay (中国銀联), though affiliations with global  VISA and MasterCard networks of course persist), is obviously problematic in a  country that has only begun to embrace credit systems, with high saving rates. Accordingly,  services such as AliPay have emerged, with agreements spanning existing banking  institutions as well as larger existing credit networks, UnionPay and the  global VISA/MC networks amongst these, in order to facilitate trust-based  internet transactions.</p>
<p>The emergence of such institutions  is a recent development in Chinese society. As Nie Jin observes in a 2007 paper  concerning current e-payment solutions in China<a name="_ftnref6"></a>,  one of the virtues of a centrally planned economy prohibiting individual and  private transactions is that there is no need for any trust/credibility system  to enable such transactions. As these have emerged in the wake of economic  reform, so too has demand for escrow and trust-based transaction services developed.  The paper continues to note that, outside of China and planned economy states,  accrued data suggests as much as 90% of business transactions are settled on  the basis of integrity (i.e. without resorting to third party escrow services,  etc., though possibly involving a payment network mediator without a trust  layer).</p>
<p>In this, the Internet functions not  as an instrument acting upon China to change it, but merely another  manifestation of an already-changing economic reality. As private enterprise  grows, it is logical to pursue the Internet as yet another sales and/or  marketing channel, and, in doing so, the same issues already identified will be  faced regarding trust online as in person. There are of course particular  challenges to online business (fraud/verification of identity, logistics/delivery,  etc.), but at the level of changing social landscapes it is clear the most  pressing issue, that of integrity, is derived not from the emergence of a  distributed, globally inter-connected network of prospective clients and  vendors, but rather as a result of economic reforms implemented over the course  of thirty years.</p>
<p>What, then, of transactions that transcend  national borders and geographic boundaries? Traditionally China’s largest  trading partners have consisted of Asian neighbours whose socio-cultural and  personal ties commend them as such. In an era of global trade facilitated by  buyer/seller protecting trust networks, is there any reason for this privileged  trading status to continue? Of course there is. <em>Guanxi</em> can only account for so much: there are logical, practical  reasons beyond this for barriers the Internet cannot (yet) alleviate. The  so-called ‘digital divide’ is often spoken of in terms of access to technology.  It is clear, however, that physical access to technology is not sufficient.  Education is often addressed as an issue affecting access, but it is generally  raised only at the level of computer literacy. With China rapidly embracing the  Internet through both PC and mobile technologies, and particularly with the  recent approval of licenses for TD-SCDMA/TD-LTE networks (3G/4G network  technologies that will dramatically improve network access speeds), the issue  of physical access is decreasingly relevant. Additionally, as mobile access  improves and touch-capable handsets increase in prevalence, barriers to  usability also decrease.</p>
<p>What, then, is the problem? The  networks are in place, users can access them, and yet trade barriers persist.  There are several issues at play here. Firstly, the dominance of the Anglophone  Internet compared to English literacy in China. While China is one of the  largest English-speaking countries, as a proportion of its own population this  is not a dominant language, and access to much Internet media and technology  requires English literacy in order to comprehend or use services.<a name="_ftnref7"></a> This is a contributing factor behind the adoption of social networking services  such as Kaixin and Xiaonei over their antecedent equivalents in the wider  Internet: Facebook particularly has offered for some time now an Chinese  language version, but its failure to sufficiently localise content from the  beginning (it is, by default, served in English) granted Chinese clones  advantage required to capture the mainland market first.</p>
<p>Secondly, there are cultural  barriers. China has an enviable adoption of blogging and ‘independent’  publishing technology. On CNNIC statistics, there are over 162 million blogs in  China: representing half of China’s Internet population, on the assumption of  only one blog per user. Yet, despite such dramatic adoption of this medium,  expression is tempered by various regulations imposed upon publishers by  service providers. Service providers who fail to conform to such regulations  face unpredictable service denials facilitated by Golden Shield Project proxies  and firewalls: Blogger and WordPress.com represent two prominent examples of  such providers. Technical considerations aside, the effect of this conformity  is a homogenisation of blog content that is prohibited from featuring  controversial material. The video netizen reporters targeted under the March 30  SARFT directive are particularly addressed on account of the difficulty of  automatically protecting against video content: scanning blog posts for banned  keywords is much more achievable. Thus, this (imposed) self-censorship stymies  the development of an independent Chinese blogging community within ethnic  media: ironically, the dependence of dissident bloggers upon non-conformist  service providers reduces the effects of their dissidence and, commensurately,  their relevance and impact upon the wider Internet. The entertainment-oriented  activities of Chinese Internet users are primarily consumptive in nature, and  the generative activity of content creation is accordingly marginalised while  so much attention continues to be paid to officially regulated media<a name="_ftnref8"></a>.  One hundred and sixty two million bloggers can’t be silenced, but they can be  (mostly) irrelevant.</p>
<p>Thirdly, the economic barriers to  global participation are significant. In a positive reflection upon China’s  internet penetration, for the past several years CNNIC’s annual reports have  identified approximately one quarter of internet users as having monthly income  of less than 500 RMB. <a name="_ftnref9"></a></p>
<p><img class="alignnone size-full wp-image-1590" title="Chart: Chinese Internet users by Income" src="http://josh.st/blog/wp-content//2009/07/china-internet-users-by-income.png" alt="Chart: Chinese Internet users by Income" width="578" height="232" /></p>
<p>This has an obvious impact upon the  willingness of netizens to engage in financially-related online activities, as  disposable income is negligible for many of them. This is borne out in another  CNNIC report<a name="_ftnref10"></a> particularly concerned with adoption of security software (安全软件) in  personal computing, particularly a section identifying individuals’ greatest  concerns where computer security problems are encountered. The greatest concern  is loss of computer files and any virus that will affect the operation of the  computer: these two comprise over 50% of respondents’ greatest concern. Neither  situation involves the theft of files, only the disabling of the user’s  computer.  This reflects relatively  lethargic adoption of e-commerce and internet banking in China, and is not a  cause of it. General consumer attitudes beyond Internet-specific security  concerns represent the greatest threat to Internet-based financial services  growth.</p>
<p>The Internet has not, here, changed  China. Indeed the question of income equality is in need of resolution before  the Internet can be used to any great economic effect: it certainly does not  presently fulfil that role for many users. Despite these qualifications, it is  undeniable that China <em>is</em> of advanced  global standing in purchase of certain digital goods connected to digital  social contexts. QQ/Tencent is one prominent example of an effective digital  goods business model not really replicated with great success in the west.  Similar to this in a game environment are massively multiplayer games that  allow conversion of cash to in-game currency. This form of digital economy is  unessential and recreational in nature. Internet development practice <em>here</em> is unique and at the forefront of  global industry, yet it continues to reflect real-world paradigms: Nike shoes,  Gucci bags, and other luxury brand items function as signs of status in the  same way webpage decorations or virtual decorative armour does. Thus here, too,  the Internet fulfils an emulative, rather than transformative, social role.</p>
<p>The Internet has been lauded and  demonised as a challenger to the establishment. This is evidently the party  view of the matter: its Golden Shield Project reportedly accrued 6.4BN<a name="_ftnref11"></a> RMB in costs in its preliminary phases, and countless more since. However, as a  result of regulation and control, the Internet in China represents not a  threat, but a mechanism for the effective consolidation of party power. Far  from functioning as a broadly transformative social mechanism, the Internet  chiefly embodies the attitudes and values of the community in which it is set.  Additionally, the boundaries imposed by linguistic, cultural, hypertextual,  political and technological mechanisms function in effect to produce a  ‘localised’ form of the Internet. As Goldsmith and Wu note in their book <em>Who Controls the Internet</em>, one of the  virtues of a ‘bordered Internet’ is that domestically held values and standards  can be preserved in a form that permits peaceful co-existence in online contexts<a name="_ftnref12"></a> —certainly there must be many within the Chinese administration who have wished  this to be true as issues of international diplomacy have spilt over in  nationalistic fervour on BBS and forums across the Chinese Internet.</p>
<p>All these boundaries are, of course,  fluid. This is one of the great virtues of the Internet, and one of the  enabling forces that will perhaps one day enable <em>significant</em> change, offering more than a reflection of society. For  now, however, China is captive to broader societal forces that impact upon its  Internet usage. The decline of censorship does not appear imminent: media  reforms in recent years have been driven largely by economics rather than  social discontent. If the benefits of open information exchange eventually  outweigh the CCP’s desire for control, it is likely that the framework of  control established over the Internet over the past 13 years since public BBS  access was first offered will persist: if ensuring a stable and ‘harmonious  society’ is the goal, whatever critics may say of oppressive Internet regimes,  the promotion of a culture of consumption and self‑censorship promises, at  least in the short term, to reduce immediate challenges to the administration.  The Chinese Internet has changed China’s attitude to the Internet, certainly,  but the speculations made over 100 years ago concerning universal free trade  and common language are as close to fulfilment by the Internet as by the  telegraph. A globalised culture, enabled <em>more</em> by force of advertising and mass media than by the Internet, is driving these  factors. Technology, whilst providing a channel for the expression of such  culture, remains stoically neutral in imparting values and attitudes.</p>
<h3>Footnotes</h3>
<div>
<div id="ftn1"><a name="_ftn1"></a> Hawthorne, J., “June 1993,” <em>The  Cosmopolitan</em>, February 1893, 456–57, in Goldsmith, J. &amp; Wu, T., <em>Who Controls the Internet?</em>, 2006, Oxford  University Press</div>
<div id="ftn2"><a name="_ftn2"></a> CNNIC, “Internet Timeline of China (2008)”, <span style="text-decoration: underline;">http://www.cnnic.cn/html/Dir/2009/05/18/5600.htm</span> Published 18 May 2009. Accessed 4 June 2009. Proportion derived from CIA World  Factbook population projections from 2000 census at 1.34BN</div>
<div id="ftn3"><a name="_ftn3"></a> Drake, W.J., “Dictatorships in the Digital Age”, <em>iMP</em>, October 2000, in Hughes, C.R., “Controlling the Internet  Architecture”, April 2002, in ASNS3619 reader.</div>
<div id="ftn4"><a name="_ftn4"></a> 国家广播电影电视总局,  《广电总局关于加强互联网视听节目内容管理的通知》, <span style="text-decoration: underline;">http://www.sarft.gov.cn/articles/2009/03/30/20090330171107690049.html</span> Published 30 March 2009. Accessed 5 June 2009.</div>
<div id="ftn5"><a name="_ftn5"></a> CNNIC/Pew Research Centre in Angelova, K., “Chart of the Day”, <em>The Business Insider</em>, <span style="text-decoration: underline;">http://www.businessinsider.com/chart-of-the-day-the-chinese-get-more-entertainment-online-the-americans-shop-2009–5</span> Published 22 May 2009. Accessed 5 June 2009.</div>
<div id="ftn6"><a name="_ftn6"></a> Nie Jin, “Analysis of Current E-Payment Solution in China-Third Party Payment  Platform”, <em>First International Symposium  on Data, Privacy and E‐Commerce</em>, 1–3 November 2007. IEEE Xplore 10.1109/ISDPE.2007.22</div>
<div id="ftn7"><a name="_ftn7"></a> Lü  Yao-Huai, “Globalization and Information Ethics”, <em>Localizing the Internet: Ethical Aspects in intercultural perspective</em>,  2007, Paderborn.</div>
<div id="ftn8"><a name="_ftn8"></a> Including in this not only state-controlled sources, but  state-monitored/filtered services, such as BBS/forum services and, under the  new SARFT regulations, licensed video-on-demand websites.</div>
<div id="ftn9"><a name="_ftn9"></a> CNNIC 2008 report</div>
<div id="ftn10"><a name="_ftn10"></a> CNNIC, “2008年中国网民信息网络安全状况研究报告”, <span style="text-decoration: underline;">http://www.cnnic.cn/uploadfiles/pdf/2009/3/27/142455.pdf</span> Published 27 March 2009. Accessed 4 June 2009. pp. 16</div>
<div id="ftn11"><a name="_ftn11"></a> CCTV News, 3 September 2002, recorded at <span style="text-decoration: underline;">http://www.epochtimes.com/gb/3/10/22/n397830p.htm</span> Published 22 October 2003. Accessed 7 June 2009.</div>
<div id="ftn12"><a name="_ftn12"></a> Op. Cit. p. 149</div>
</div>
<h3>Bibliography</h3>
<p align="left">Angelova, K., “Chart of the Day”, <em>Business Insider</em>, <span style="text-decoration: underline;">http://www.businessinsider.com/chart-of-the-day-the-chinese-get-more-entertainment-online-the-americans-shop-2009–5</span> Published 22 May 2009. Accessed 5 June 2009.</p>
<p>CCTV News, 3 September 2002, recorded at <span style="text-decoration: underline;">http://www.epochtimes.com/gb/3/10/22/n397830p.htm</span> Published 22 October 2003. Accessed 7 June 2009.</p>
<p>ChinaInternetWatch.com, “China Internet Statistics 2009 Whitepaper”, <span style="text-decoration: underline;">ChinaInternetWatch.com</span>, 13 April 2009. Accessed 4 June 2009.</p>
<p>CNNIC, “2008年中国网民信息网络安全状况研究报告”, <span style="text-decoration: underline;">http://www.cnnic.cn/uploadfiles/pdf/2009/3/27/142455.pdf</span> Published 27 March 2009. Accessed 4 June 2009.</p>
<p>CNNIC, “Internet Timeline of China (2008)”, <span style="text-decoration: underline;">http://www.cnnic.cn/html/Dir/2009/05/18/5600.htm</span> Published 18 May 2009. Accessed 4 June 2009.</p>
<p>Drake, W.J., “Dictatorships in the Digital Age”, <em>iMP</em>, October 2000, in Hughes, C.R., “Controlling the Internet Architecture”, April 2002, in ASNS3619 reader, Dr David Bray, 2009.</p>
<p>Goldsmith, J. &amp; Wu, T., <em>Who Controls the Internet?</em>, 2006, Oxford University Press</p>
<p>Lü Yao-Huai, “Globalization and Information Ethics”, <em>Localizing the Internet: Ethical Aspects in intercultural perspective</em>, 2007, Paderborn.</p>
<p>Nie Jin, “Analysis of Current E-Payment Solution in China-Third Party Payment Platform”, <em>First International Symposium on Data, Privacy and E‐Commerce</em>, 1–3 November 2007. IEEE Xplore 10.1109/ISDPE.2007.22</p>
<p>国家广播电影电视总局, 《广电总局关于加强互联网视听节目内容管理的通知》, <span style="text-decoration: underline;">http://www.sarft.gov.cn/articles/2009/03/30/20090330171107690049.html</span> Published 30 March 2009. Accessed 5 June 2009.</p>
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