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<title>Haaze.com / marmonli12 / Published News</title>
<link>http://www.haaze.com</link>
<description>Test Web 2.0 Content Management System</description>
<pubDate>Sat, 22 Jan 2011 08:10:14 +0000</pubDate>
<language>en</language>
<item>
<title><![CDATA[Toshiba to iPad: You're flashy, but you're lame]]></title>
<link>http://www.haaze.com/story.php?title=toshiba-to-ipad-youre-flashy-but-youre-lame</link>
<comments>http://www.haaze.com/story.php?title=toshiba-to-ipad-youre-flashy-but-youre-lame</comments>
<pubDate>Sat, 22 Jan 2011 08:10:14 +0000</pubDate>
<dc:creator>marmonli12</dc:creator>
<category>Mobile &amp; Electronics</category>
<guid>http://www.haaze.com/story.php?title=toshiba-to-ipad-youre-flashy-but-youre-lame</guid>
<description><![CDATA[There are ways of telling a rival that you don't respect them. You can shun them. You can rise above them. You can even steal their lover.Toshiba, however, has decided on a slightly different strategy when it comes to Apple. In a move redolent of the New Zealand haka war dance, Toshiba has decided to stick out its tongue, widen its eyes, and tell Apple that theiPad is, as they say in certain English quarters, pants.I am grateful to the sensitive eyes at AllThingsD who first spotted that Toshiba has created a Website for its newtablet computer.When you go to this sturdy site and happen to employ a device that isn't Flash-friendly--say an iPad oriPhone--Toshiba welcomes you with the words: &quot;Such a shame.&quot; Has the company somehow been tracking you with that new gorgeous Honeycomb software Does it know that you have endured a terrible haircut at the local nails, hair, and reflexology salonThe new Toshiba Flashiba has FaceTime. Or something like it.(Credit:Screenshot: Chris Matyszczyk/CNET)Not quite. For the site continues: &quot;Add this to the list of interesting places on the Internet you can't see on your device. Of course, if you had a Toshiba Tablet, you would enjoy the entire Internet. Yep, Flash sites too.&quot;Naturally, there will be those who will be delighted that someone is assaulting the iPad's soft spots with a pickled pitchfork.However, perhaps others might sense a couple of drawbacks. One is that you can't actually buy one of these confident Toshiba tablets. At least until sometime in springtime, when there just might be a lot more iPad-o-likes to compete with. The even more pedantic might also be concerned that it doesn't even have a name yet, though the Toshiba Taunter is surely high up on the list, as is the Toshiba Flashiba. And then what happens if new tablets come out that have even better features than the Toshiba Taunter/Flashiba What if one of them is the iPadThat's often the problem with calling someone names. You have to know them very, very well. You have to know how they might react. And you have to be sure you have back-up, rather than just the ability to get people's backs up. It's like the playoffs. Taunting, gesticulating, trash-talking, even flash-talking, is all very well. But then you have to go out and play. Which is a little harder. <br/><br/>0 Vote(s) ]]></description>
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<title><![CDATA[Activision Blizzard makes $360M overnight on Call of Duty: Black Ops launch]]></title>
<link>http://www.haaze.com/story.php?title=activision-blizzard-makes-360m-overnight-on-call-of-duty-black-ops-launch</link>
<comments>http://www.haaze.com/story.php?title=activision-blizzard-makes-360m-overnight-on-call-of-duty-black-ops-launch</comments>
<pubDate>Mon, 30 Nov -001 00:00:00 +0000</pubDate>
<dc:creator>marmonli12</dc:creator>
<category>Latest News</category>
<guid>http://www.haaze.com/story.php?title=activision-blizzard-makes-360m-overnight-on-call-of-duty-black-ops-launch</guid>
<description><![CDATA[Activision Blizzard must get tired of setting records all the time.Call of Duty: Black Ops has shattered the previous record for launch-day game sales set by its predecessor Modern Warfare 2 and raked in $360 million for the largest publisher in the world, Activision Blizzard announced today.Gamers came out in droves and picked up 5.6 million copies of the game in North America and the United Kingdom when the game launched on Tuesday. That breezes past Call of Duty: Modern Warfare 2&amp;'s previous record of 4.7 million copies sold in the first 24 hours after its release. (Modern Warfare 2 went on to sell $550 million worth of games in the next five days after its launch.) Some gamers went so far as to skirt the law to acquire Call of Duty: Black Ops as early as possible, robbing a GameStop store of 100 copies of the game before it launched.Call of Duty has proved to be an extremely popular game for console owners. The Call of Duty map packs alone have generated enough sales to be considered top-selling titles this year. Xbox Live gamers have played Call of Duty for more than 3 billion hours to date.&amp;''Call of Duty has established itself as a true pop-culture phenomenon,&amp;'' said Thomas Tippl, chief operating officer of Activision Blizzard, at BMO Capital Markets&amp;' 18th annual Digital Entertainment conference. &amp;''We never seem to be surprised by who plays Call of Duty, because it&amp;'s everyone a4&quot;there&amp;'s a soldier in all of us.&amp;''Mike Hickey, an analyst at Janco Partners, said in a note on Friday that the game could sell more than 18 million units, generating $818 million in revenue. Thata4a4s less than Call of Duty: Modern Warfare 2 sold last year. Last yeara4a4s title sold more than 20 million units and generated more than $1 billion in sales.Call of Duty: Black Ops has big shoes to fill. Modern Warfare 2 was a strong challenger for the game of the year last year by most publishers, and was universally praised for its strong multiplayer component. It had a score of 94 after 100 reviewers submitted scores on review aggregating site Metacritic. Call of Duty: Black Ops currently has a score of 90 after 44 reviews on Metacritic.But that shouldn&amp;'t have Activision Blizzard sweating. The publishing giant is also releasing the next expansion to its critically acclaimed online role-playing game, World of Warcraft. Cataclysm, the third expansion pack, will likely sell at least another 12 million copies a4&quot; based on the number of people currently paying to play the online game.World of Warcrafta4a4s earlier expansion packs were incredibly successful, with its first expansion selling 2.4 million units in 24 hours and its most recent one a4&quot; Wrath of the Lich King a4&quot; selling 2.8 million units in the first day.And gamers won&amp;'t even need to show up at video game stores across the country to pick up the game, since Activision Blizzard has released the game for download.Next Story: Nintendo: the gaming landscape has changed forever, but console&amp;'s are doing just fine Previous Story: Social Gaming Summit: December 1 in New York (VentureBeat discount)PrintEmailTwitterFacebookGoogle BuzzLinkedIn      DiggStumbleUponRedditDeliciousGoogleMore&amp;8230'          Tags: Call of Duty, Call of Duty Black Ops, Cataclysm, Modern Warfare 2, World of WarcraftCompanies: Activision BlizzardPeople: Mike Hickey, Thomas Tippl          Tags: Call of Duty, Call of Duty Black Ops, Cataclysm, Modern Warfare 2, World of WarcraftCompanies: Activision BlizzardPeople: Mike Hickey, Thomas TipplVentureBeat has new weekly email newsletters.  Stay on top of the news, and don't miss a beat.<br/><br/>0 Vote(s) ]]></description>
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<title><![CDATA[The Wikileak China-Google&nbsp'Cables]]></title>
<link>http://www.haaze.com/story.php?title=the-wikileak-china-googlenbspcables</link>
<comments>http://www.haaze.com/story.php?title=the-wikileak-china-googlenbspcables</comments>
<pubDate>Mon, 30 Nov -001 00:00:00 +0000</pubDate>
<dc:creator>marmonli12</dc:creator>
<category>Latest News</category>
<guid>http://www.haaze.com/story.php?title=the-wikileak-china-googlenbspcables</guid>
<description><![CDATA[A week ago when the first Wikileak cables started coming out, the New York Times reported that some of them shed some more light on the Chinese hacking attacks on Google which led to its withdrawal from operating in China proper.  But the actual cables were not released until today.  The NYT describes the cables at length in another article today.  But the underlying cables are hard to find, so I&amp;'ve reproduced the four main ones below.  I found three of them on Wikileaks, and the other on on the New York Times&amp;' own Wikileaks documents page.It appears from the cables that Google&amp;'s troubles in China were going on for years, but it got into particular trouble in 2009 when its Chinese site, Google.cn, wasn&amp;'t blocking pornographic sites to the level the Chinese government required.  At that time, Google also had a link to its main Google.com site on Google.cn, which the Chinese government didn&amp;'t like either. In particular, one Politburo member, identified by the New York Times as Li Changchun, &amp;''discovered that Googlea4a4s worldwide site is uncensored, and is capable of Chinese language searches and search results. XXXXXXXXXXXX allegedly entered his own name and found results critical of him. He also noticed the link from google.cna4a4s homepage to google.com, which XXXXXXXXXXXX reportedly believes is an &amp;8216'illegal site.&amp;'&amp;''  The Chinese government then told China&amp;'s three main telecom companies to stop doing business with Google.The cables also describe denial of service attacks on Google&amp;'s sites in China, and concerns dating back to 2006 about Google Earth images of sensitive government facilities.Cable 09BEIJING1336, Google China Paying Price For Resisting Censorship, May 18, 2009C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 001336 SIPDIS State for EAP/CM &amp;8211' SFlatt, PPark, AGoodmanState for EEB/CIP &amp;8211' FSaeed, SFlynnUSTR for AWinter, JMcHale, AMain, TWinelandCommerce for MACCommerce for ITA &amp;8211' IKasoff, JWu EO 12958 XXXXXXXXXXXXXTAGS ETRD, PGOV, SOCI, SCUL, ECON, CHSUBJECT: XXXXXXXXXXXXXRef: Beijing XXXXXXXXXXXXXClassified By: Economic Minister Counselor Robert Luke. Reasons 1.4 (b) and (d).Summary&amp;8212'&amp;8212'- a4s1. (C) CDA spoke by phone with  XXXXXXXXXXXXX to discuss recent pressure by the Chinese government to censor the companya4a4s Chinese website, accelerated perhaps by the approach of significant political anniversaries.XXXXXXXXXXXXX  averred that the root of the problem was Chinaa4a4s Politburo Standing Committee member XXXXXXXXXXXXX who wants the company to remove a link to the uncensored google.com site from its sanitized Chinese version, google.cn.  XXXXXXXXXXXXX  said Google China has resisted that step as against company principles, though it has taken other smaller measures to try and placate the government. Thus far that tactic has been unsuccessful, and the government has already taken commercial steps against Google, including telling the three dominant SOE telecoms to stop doing business with the company. CDA and XXXXXXXXXXXXX  discussed possible USG advocacy, including having imminent visiting Codels and possible Cabinet-level officials raise this directly. For the moment, Google does not wish to go public, preferring to see if current efforts produce results. End Summary.a4s2. (C) XXXXXXXXXXXXX, CDA Dan Piccuta and XXXXXXXXXXXX  talked XXXXXXXXXX about the increasing censorship pressure Google is facing.XXXXXXXXXXXX  said Politburo Standing Committee member XXXXXXXXXXXX recently discovered that Googlea4a4s worldwide site is uncensored, and is capable of Chinese language searches and search results. XXXXXXXXXXXX allegedly entered his own name and found results critical of him. He also noticed the link from google.cna4a4s homepage to google.com, whichXXXXXXXXXXXX reportedly believes is an a4Aillegal site.a4 XXXXXXXXXXXX asked three ministries (note: most likely the Ministry of Industry and Information Industry, State Council Information Office, and Public Security Bureau.) to write a report about Google and demand that the company cease its a4Aillegal activities,a4 which include linking to google.com.Commercial Consequences Already Visible&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' a4s3. (SBU) XXXXXXXXXXXX  said that removing the link to google.com is against the companya4a4s principles, and its leadership has definitively refused to make such a change, despite the importance of the Chinese market. Google recently has officially but a4Apolitelya4 told the government this, XXXXXXXXXXXX  noted, and their Chinese interlocutors at the time were visibly unhappy and said they would report the news to XXXXXXXXXXXX . XXXXXXXXXXXX reported that Google had, however, already made some changes to its Chinese site and will continue to make others. Nonetheless, he said China has already asked its three state-owned telecom companies to stop working with China, a hard blow because mobile Internet is Googlea4a4s a4Abig bet in China.a4XXXXXXXXXXXX  said one telecom company is seeking to back out of an existing contract with Google, while the two others have stopped moving ahead with negotiations. Other SOEs have also been asked to stop working with Google in China,XXXXXXXXXXXX  said.a4s4. (SBU) The best case scenario XXXXXXXXXXXX   foresees is that China responds to Googlea4a4s official refusal to take down the link by issuing an order warning against further non-compliance. More likely isBEIJING 00001336 002 OF 003that google.com will be blocked in China, either sporadically or permanently. This would be similar to Chinaa4a4s current blocking of YouTube, but with greater implications for users including business travelers and tourists, advertisers, and for Googlea4a4s network and technology platforms, possibly affecting other services like Gmail.thought it also possible that the government might revoke Googlea4a4s license to operate in China. He acknowledged that sensitive anniversaries in 2009 present special challenges to the Chinese government, especially the XXXXXXXXXXXX  June 4 Tiananmen anniversary. (Note: Possibly in preparation for this anniversary year, Chinese censors have engaged in a months-long a4Aanti- vulgara4 campaign to shut down hundreds of a4Aillegala4 websites' see reftel.)Google Deems its Legal Basis Sound&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'- a4s5. (SBU) Google lawyers have found no legal basis for Chinaa4a4s demands,  XXXXXXXXXXXX  reported. While the government has called google.com an illegal website to justify its request for removal of the link, Chinese law does not explicitly identify the site as illegal, the site is not blocked by China, and thousands of other Chinese websites include links to google.com.a4s6. (C) XXXXXXXXXXXX  said Google faces the dilemma of losing the Chinese market in retaliation for maintaining Googlea4a4s integrity and brand. The CDA and XXXXXXXXXXXX discussed the difficulty of engaging China on this matter, since no trade obligations cover Chinaa4a4s censorship regime, but considered what U.S. Government actions might be possible nonetheless.USG High-Level Advocacy Requested&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' a4s7. (C) XXXXXXXXXXXX  suggested that high-level USG officials phone or write to XXXXXXXXXXXX to indicate support for Googlea4a4s operations in China, in accordance with Chinese law. He suggested the letter could urge further dialogue toward a mutually acceptable resolution and suggest diplomatic or commercial consequences in the event of rash or disruptive action. After some discussion, XXXXXXXXXXXX  concluded that intervention by Secretary Locke might be the most effective step.a4s8. (C)XXXXXXXXXXXX   He noted that Google has also raised the issue with Representatives Kirk and Larson. However, he stressed, he would like USG support in making contact.a4s9. (C) The CDA said senior Embassy officials will meet with relevant Chinese ministries to make it clear the USG is aware of the issue, and to urge them to work constructively with Google.XXXXXXXXXX  stressed that, before the USG engages on their behalf, Google would prefer to wait a few days to see what other steps the Chinese government might take.Google History in China&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8211' a4s10. (SBU) XXXXXXXXXXXX  explained that Google entered the Chinese market in 2006 under scrutiny from Congress and shareholders, both concerned with the companya4a4s agreement to be subject to censorship. To enter the China market legally, but remain faithful to its values, the company took a path ofBEIJING 00001336 003 OF 003a4Aresponsible engagementa4 that included three commitments: Google will never disclose to the Chinese government any personal information about its users or their search habits' Google will always include a disclosure notice to identify when search results had been removed due to censorship' and Google will always provide an uncensored, U.S.-hosted site, subject to U.S. law.a4s11. (SBU) XXXXXXXXXXXX said the Chinese governmenta4a4s granting of the licenses necessary for Google to operate in China implied passive approval or at least tolerance of the above principles. Since 2006, XXXXXXXXXXXX  said, the company has operated responsibly and legally, following censorship orders just as other companies do. The vast majority of Chinese government requests for censorship have been related to pornographic material and illegal activities, XXXXXXXXXXXX said. In total, only about one percent of search results are blocked in China, according to the company.a4s12. (SBU)XXXXXXXXXXXX observed that, before Google China was formed, google.com was blocked in China in 2002 for approximately two months. At the time, he said, scholarly users were the companya4a4s largest constituency, and their complaints about limited access to academic materials through Google ultimately caused the government to re-open the site. This time,XXXXXXXXXXXX  observed,XXXXXXXXXX seems unconcerned with such repercussions, and will likely not yield to pressure from Chinaa4a4s Internet community. XXXXXXXXXXXX  he said, believes Google is a a4Atoola4 of the USG being used to a4Afoment peaceful revolution in China.a4Comment&amp;8212'&amp;8212'- a4s13. (C) While we can neither confirm nor deny the provocative language and views attributed to XXXXXXXXXXXX,  the claims of government-forced retribution by the major SOE telecoms companies are cause for serious concern. The potential for continuing escalation by the Chinese, assuming Google sticks to its guns &amp;8212' and the likelihood of loud U.S. Congressional and public outcry if it caves &amp;8212' suggest a high-level USG response may be in order. While we cannot verify XXXXXXXXXXXXa4a4s claims of commercial retaliation, such a move seems quite possible. End Comment.Cable 09BEIJING1957, GOOGLE CLAIMS HARRASSMENT BY CHINESE GOVERNMENT, July 12, 2009SUBJECT: GOOGLE CLAIMS HARRASSMENT BY CHINESE GOVERNMENT a4s1. (SBU) Summary. XXXXXXXXXXXXX  claim the companya4a4s services have been blocked by the Chinese government periodically over the past three years. After users reported on June 18 that Google.cm search engine was not filtering returns for pornographic sites, the government on June 24 again blocked the companya4a4s services for 24 hours resulting in the loss of 20 percent of its traffic that day.XXXXXXXXXXXXX believe the real reason for the governmenta4a4s wrath is the companya4a4s refusal to remove a link to google.com from the google.cn website. They argue doing so would be in violation of a commitment the company made with Congress. End Summary.a4s2. (SBU) In conversations XXXXXXXXXXXXX told ADCM and EconOff that the Chinese government has been blocking several of Googlea4a4s Internet sites periodically for the past three years. They said the blocking and other harassment had intensified in June 2009, purportedly because of the search enginea4a4s failure to filter some inappropriate or illicit content found on the web.a4s3. (SBU)XXXXXXXXXXXXX  said that XXXXXXXXXXXXX a group of Chinese Internet users reported that Google.cn was not effectively filtering pornographic sites. XXXXXXXXXXXXX said Google China representatives were called to a meeting co-hosted by the State Council Information Office (SCIO, responsible for controlling Internet content), the Ministry of Industry and Information Technology (MIIT, responsible for Internet technology and policy), and the Ministry of Public Security (MPS, responsible for Internet crime). The Ministries demanded Google provide better filtering on its Google.cn search engine and temporarily stop indexing sites outside of China. XXXXXXXXXXXXX The company refused this request.a4s4. (SBU) Google then experienced a wave of a4Aattacksa4 in the media reporting that pornographic material could be found through the Google search engine. (Note: In the nine days following the June 18 incident, an incomplete list of reporting in the Chinese press contains 57 separate articles attacking Google. End Note). On June 24 servers in China were virally infected, causing them to redirect computers attempting to reach Google pages to an unknown web site. These attacks made Google services unavailable to many Chinese users for approximately 24 hours, and caused the company to lose 20% of its traffic on that day.Lose the Google.com&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'- a4s5. (SBU) BothXXXXXXXXXXXXX believe the real reason for the governmenta4a4s wrath is Googlea4a4s refusal to remove the link to Google.com from the Google.cn website.XXXXXXXXXXXXX explained that, when the company decided to enter the Chinese market, it testified before Congress that it would agree to censor its search results in China as required by Chinese law based on three principles. First, the company would not store private user information so as to avoid persecution of individuals based on their use of Googlea4a4s services.  Second, the company would disclose to users when a search result had been censored. Third, Google would maintain a link from the Google.cn homepage to Google.com.a4s6. (SBU) According to XXXXXXXXXXXXX, from 2007 through 2009 Google received numerous informal inquiries from the Chinese government as to the possibility of removing the Google.com link. The company repeatedly explained that it could not, based on its promise to Congress. XXXXXXXXXXXXX  said the government, for the first time, verbally requested the company remove the link. Google China explained removing the link was not required under Chinese law and reiterated that doing so would violate the companya4a4s commitment. This was the first time the company had explicitly denied a government request, XXXXXXXXXXXXX stated.Pulling Out an Option&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' a4s7. (SBU) XXXXXXXXXXXXX said the June 24 blocking of Googlea4a4s services is only the most recent of a three year history of blockings. He noted the companya4a4s You Tube service has been entirely blocked since March 24.  He believes the company is being harassed. XXXXXXXXXXXXX  said the negative press coverage and service outages have caused the company to lose market share. XXXXXXXXXXXXXsays the company is regularly audited by tax authorities, and XXXXXXXXXXXXX. XXXXXXXXXXXXX said that, faced with the continualBEIJING 00001957 002 OF 002difficulties of doing business in China, the company may even consider pulling out of the market.a4s8. (SBU) Comment. Google is the only international search engine still doing business in China. It is an important symbol. If Google were forced to withdraw from the market, the move could attract heavy international attention. End Cable 06BEIJING23571, PRC CLAIMS HIGH RESOLUTION IMAGERY ON GOOGLE EARTH, November 7, 2006SUBJECT: PRC CLAIMS HIGH RESOLUTION IMAGERY ON GOOGLE EARTHCOULD AID TERRORIST ATTACKS ON CHINAClassified By: Classified by Deputy Chief of Mission David S. Sedney.Reasons 1.4 (b/d).SUMMARY&amp;8212'&amp;8212'-a4s1.  (C) China wants the United States Government to takeaction to get Google to reduce the resolution of the GoogleEarth images of China&amp;'s military, nuclear, space, energy andother sensitive government agency installations in order todeprive terrorists of potentially dangerous information, XXXXXXXXXXXXXXXXXXXXXXXX toldthe DCM on XXXXXXXXXXXX said the Beijing request wasbased on possible &amp;''grave consequences&amp;'' if terrorists exploitthe information to harm China.  Google Earth is a privatecompany, the DCM reminded XXXXXXXXXXXX was noncommittal onwhether China would directly contact Google or the Europeanimagery providers and the other sources of high resolutionimagery on the Internet.  Other countries have shared similarconcerns with China, XXXXXXXXXXXX said, but he refused to divulgecountry names. End Summary.Google Earth High Resolution Images a Threat to China&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8211'a4s2.  (C) Google Earth is providing high resolution images ofsensitive Chinese facilities over the Internet, therebyendangering PRC national security, XXXXXXXXXXXXXXXXXXXXXXXX toldthe DCM during a XXXXXXXXXXXX meeting.  These facilitiesinclude military installations, nuclear test sites, satellitelaunch sites, oil production facilities, power generatingplants and important government departments.  The resolutionis one meter for most of China, and is as fine as 0.6 metersin Beijing and Shanghai, allowing anyone with Internet accessto view these facilities in great detail.  Moreover, GoogleEarth allows users to post information about specificlocations, XXXXXXXXXXXX continued, which means information aboutimportant Chinese agencies and sensitive installations iseffectively being published on the Internet.&amp;''Grave Consequences&amp;'' if Terrorists Use Imagery&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'a4s3.  (C) XXXXXXXXXXXX said China is extremely concerned thatterrorist organizations could access the high resolutionimagery and posted information and present a grave threat toPRC national security.  If terrorists used the imagery fromGoogle Earth to cause damage to China, there would be &amp;''graveconsequences,&amp;'' warned XXXXXXXXXXXX.  In the spirit of our soundbilateral cooperative relationship, particularly oncounterterrorism issues, XXXXXXXXXXXX asked that the United Statesplace &amp;''great importance&amp;'' on China&amp;'s concerns, understand thesensitivity of the matter and take action so that Google willreduce the resolution of the images of China&amp;'s sensitivefacilities.DCM: Google a Private Company, and Not Imagery Source&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8211'a4s3. (C) The DCM told XXXXXXXXXXXX that he would report the requestto Washington, but noted that Google is a private company.The DCM said he had no information to offer on what, if any,role or response the United States Government might have tothe Chinese presentation.  The DCM noted that the Chinesepoints only asked for a reduction in the resolution and askedif the Chinese sought any specific level.  The DCM also askedwhether XXXXXXXXXXXX had contacted Google directly and, sinceGoogle purchases the imagery as any individual or entity can,whether China had contacted the satellite imagery providers.XXXXXXXXXXXX: Other, Unspecified Countries Have Similar Concerns&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8212'&amp;8212'-a4s4. (C) XXXXXXXXXXXX responded that China is approaching the UnitedStates Government because the issue is directly relevant tocounterterrorism and that while Google is a private companyit operates in the United States &amp;''political and legalenvironment.&amp;''  China is requesting the United States takeaction to prevent the information from being misused to causedamage to China, XXXXXXXXXXXX reiterated.  He offered that Chinahad been in discussions with other countries with similarconcerns about Google Earth.  However, XXXXXXXXXXXX refused toprovide the names of the other countries, noting he wasunable to share the information due to prior agreements withBEIJING 00023571  002 OF 002those countries.Europe the Source of Imagery, But Google Earth is the Key&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8212'&amp;8212'a4s5.  (C) China will talk to Google about the &amp;''technicaldetails,&amp;'' XXXXXXXXXXXX continued, adding that it is not for the MFAto determine the appropriate resolution level.  China knowsthe source data comes from European companies, satelliteoperators and the European space agency but XXXXXXXXXXXX said Chinasees Google as the problem because it makes the informationeasily accessible.  When pressed, XXXXXXXXXXXX admitted thatBeijing had not yet contacted the European providers or thegovernments associated with the European space program.  XXXXXXXXXXXXXXXXXXXXXXXX said that while China will look at the other Internetsources of the high resolution imagery, Google,s well knownimagery is of greatest concern.RandtAnd this one from the NYT (with redactions): Chinese Government Singles Out GoogleDATE a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;:a4&quot;a4&quot;a4&quot;a4&quot;:a4&quot;a4&quot;a4&quot;a4&quot;SOURCE Embassy BeijingCLASSIFICATION SECRETa4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;SIPDISNSC FOR BADER, MEDEIROS, AND LOIE.O. 12958: DECL: 01/26/2030TAGS: ECON, PGOV, PHUM, PREL, EINV, CHSUBJECT: GOOGLE UPDATE: PRC ROLE IN ATTACKS AND RESPONSESTRATEGYREF: a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;.a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;Classified By: DCM Robert Goldberg. Reasons 1.4 (b), (d).1. (S) Summary: A well-placed contact claims that theChinese government coordinated the recent intrusions ofGoogle systems. According to our contact, the closely heldoperations were directed at the Politburo Standing Committeelevel.&amp;8211' Another contact claimed a top PRC leader was activelyworking with Google competitor Baidu against Google.&amp;8211' Chinese concerns over the recent Google threat to takedown the company&amp;'s Chinese-language search engine google.cnover censorship and hacking allegations were focused on theservice&amp;'s growing popularity among Chinese Internet users anda perception that the USG and Google were working in concert.&amp;8211' An appeal to nationalism seems to be the Chinesegovernment&amp;'s chosen option to counter Google&amp;'s demand toprovide unfiltered web content.&amp;8211' Contacts in the technology industry tell us that Chineseinterference in the operations of foreign businesses iswidespread and often underreported to U.S. parent companies.End Summary.Attacks Directed at High Level&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'2. (S) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot;) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot;) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;. a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;'a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;.(a4&quot;a4&quot;a4&quot;a4&quot;: a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;'a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;.) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;'a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot;). a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; &amp;''a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;''a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;. a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;), a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;'a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;.PRC Sees USG and Google Working Together&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'-3. (C) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;), told PolOff a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; thatGoogle&amp;'s recent move presented a major dilemma (maodun) forthe Chinese government, not because of the cyber-securityaspect but because of Google&amp;'s direct challenge to China&amp;'slegal restrictions on Internet content. The immediatestrategy, a4&quot;a4&quot;a4&quot;a4&quot; said, seemed to be to appeal to Chinesenationalism by accusing Google and the U.S. government ofworking together to force China to accept &amp;''Western values&amp;''and undermine China&amp;'s rule of law. The problem the censorswere facing, however, was that Google&amp;'s demand to deliveruncensored search results was very difficult to spin as anattack on China, and the entire episode had made Google moreinteresting and attractive to Chinese Internet users. All ofa sudden, a4&quot;a4&quot;a4&quot;a4&quot; continued, Baidu looked like a boringstate-owned enterprise while Google &amp;''seems very attractive,like the forbidden fruit.&amp;'' He said it &amp;''seems clear&amp;'' to theChinese people that Google and the U.S. government wereworking together on Internet freedom and to undermine Chinesegovernment controls on the Internet. That made someintellectuals happy, a4&quot;a4&quot;a4&quot;a4&quot; said, but &amp;''some others&amp;'' regarded itas interference in China&amp;'s internal affairs.Industry: Interference Common, Paranoia Driving PRC Policy&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8212'&amp;8212'-a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; 002 OF 0024. (C) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;&amp;'a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (please protect) noted thepronounced disconnect between views of U.S. parent companiesand local subsidiaries. PRC-based company officials oftendownplayed the extent of PRC government interference in theiroperations for fear of consequences for their local markets.Our contact emphasized that Google and other U.S. companiesin China were struggling with the stated Chinese goal oftechnology transfer for the purpose of excluding foreigncompetition. This consultant noted the Chinese wereexploiting the global economic downturn to enact increasinglydraconian product certification and government procurementregulations to force foreign-invested enterprises (FIEs) totransfer intellectual property and to carve away the marketshare of foreign companies.Chinese Media: American Hypocrisy and Cultural Hegemony&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212' &amp;8212'&amp;8212'&amp;8212'&amp;8211'5. (U) The Secretary&amp;'s speech continued to dominate headlinesJanuary 25-26, with the official People&amp;'s Daily (circ 2.2million) alleging collusion between U.S. officials and thebusiness community as evidenced by the propinquity ofGoogle&amp;'s rethink of its China business and the Secretary&amp;'sspeech. Chinese media again accused the U.S. of &amp;''culturalhegemony&amp;'' for setting the standards for &amp;''so-called Internetfreedom8 and of hypocrisy for calling for the free flow ofinformation while using the Internet as a political andmilitary tool. People&amp;'s Daily-affiliated Global TimesEnglish (circ 150,000) called the speech a &amp;''milestone&amp;''showing that U.S. and Western political interests were&amp;''taking over every dimension&amp;'' of cyberspace.6. (U) The Party-affiliated Beijing News (circ 530,000)opined that the speech showed &amp;''a huge gap between Chinese andAmerican information industries, which may lead to a tradewar strategy.&amp;'' In an article headlined &amp;''China IntensifiesCounterattack on Internet Accusation,&amp;'' Global Times Chinese(circ 1.3 million) quoted Chinese scholar Niu Xinchun asrejecting the theory that U.S.-China conflict would replacethe &amp;''G2&amp;8243' cooperation model, noting that U.S. attacks usuallyended &amp;''poorly&amp;'' when the U.S. considered its practicalinterests. Many papers quoted statements from the StateCouncil Information Office and Ministry of Industry andInformation Technology calling Chinese Internet controls&amp;''legitimate&amp;'' and saying they should not be subject to&amp;''unjustifiable interference.&amp;'' Papers continued to conflateGoogle&amp;'s China business strategy with the Secretary&amp;'s speech.Blogging Circumscribed&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'&amp;8212'-7. (SBU) Anecdotally, censors appear to have cracked down onblogging about the Secretary&amp;'s speech. a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; (a4&quot;a4&quot;a4&quot;a4&quot;) a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;, a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot;a4&quot; a4&quot;a4&quot;a4&quot;a4&quot;. Secretary Clinton&amp;'s speech is currently blockedin Chinese on state.gov but remains accessible on the U.S.Embassy website in both English and Chinese.HUNTSMAN<br/><br/>0 Vote(s) ]]></description>
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<title><![CDATA[KreditFly launches mobile payments system with credit guarantees (exclusive)]]></title>
<link>http://www.haaze.com/story.php?title=kreditfly-launches-mobile-payments-system-with-credit-guarantees-exclusive</link>
<comments>http://www.haaze.com/story.php?title=kreditfly-launches-mobile-payments-system-with-credit-guarantees-exclusive</comments>
<pubDate>Mon, 30 Nov -001 00:00:00 +0000</pubDate>
<dc:creator>marmonli12</dc:creator>
<category>Technology</category>
<guid>http://www.haaze.com/story.php?title=kreditfly-launches-mobile-payments-system-with-credit-guarantees-exclusive</guid>
<description><![CDATA[Online games have seen huge windfalls thanks to the free-to-play business model, where a user plays for free and then pays money for virtual goods. But getting more people to pay could make the business even bigger.That&amp;'s where mobile payments start-up KreditFly comes in. KreditFly is launching a mobile payments system that makes it much easier for gamers to get off the fence and pay for virtual items. And it carries little risk for merchants, who won&amp;'t get stuck with the tab so easily when users fail to pay. In doing so, KreditFly attacks the problem of friction, which is the No. 1 obstacle to the growth of online game revenues. While free-to-play games have become very popular in Europe and Asia, they are only starting to become popular in the U.S.&amp;''We&amp;'re different from any other mobile payments system today,&amp;'' said Paul Kim, chief executive of KreditFly.Santa Clara, Calif.-based KreditFly is Kim&amp;'s brainchild. Kim also started BilltoMobile, which is now the U.S. arm of Korean payments company Danal and is bringing lower fees to mobile transactions when users make virtual goods payments that appear on a consumer&amp;'s mobile phone bill. KreditFly competes with BilltoMobile, Zong and Boku. But it does not execute its transactions through mobile carriers.Here&amp;'s how it works: When a user wants to buy something in a game, they can choose KreditFly&amp;'s payment system as one of the options alongside credit card payments or PayPal. When they do so, the user enters a mobile phone number. KreditFly sends a text message with a four-digit code back to the user, who enters it to verify the transaction.KreditFly runs a credit check on the name associated with the phone number and issues a &amp;''Micro-credit,&amp;'' which can be used to purchase goods. The user has to pay that bill within seven days, using cash, credit cards, prepaid cards, or paper-based money orders. If they don&amp;'t pay, they won&amp;'t be able to keep on buying things. Kim said in an interview that the friction-free part is that the user does not have to fill out a registration form for the first payment. They can thus execute the transaction in as little as 15 seconds.KreditFly only requires a user to register once they&amp;'ve made a payment. After the user establishes himself or herself as credit worthy, they can then make bigger and bigger transactions online. Kim says that merchants don&amp;'t have to worry about getting stiffed because KreditFly guarantees 100 percent of its Micro-credits. It can do so because it uses the mobile phone information and other data to verify the user&amp;'s identity' by contrast, other payments firms use email, which can easily be used to set up a false identity. Kim said that the company&amp;'s focus on reliable collections of unpaid bills is one of its advantages. The system should be attractive to gamers who don&amp;'t have credit cards.&amp;''We can create a zero risk environment for merchants,&amp;'' Kim said.The fee for mobile payments will also be a lot lower than the 50 percent charged by carriers. Kim said it will be under 20 percent of the total transaction price. The results should be high conversion of free players to paid players and zero risk for bad debt, Kim said. Lower friction, lower fees. That should help the company take off.&amp;''No company has really cracked this nut,&amp;'' Kim said.KreditFly has already successfully processed several thousand virtual goods transactions for three online games through partners such as with Aeria Games, which has 15 million users. Of those tested, more than 70 percent of the users had never paid at the merchant site before. On top of that, the users who had paid before had previously used high-fee alternatives. About 50 percent of the transactions were from repeat purchasers. The average transaction size was $27, and the average user purchasing through KreditFly is now spending $75 per month. Needless to say, those are outstanding numbers when it comes to mobile payments. Non-paying users are blacklisted from the service and reported to the merchant, who can block the user from the service.Kim started the company in the spring of 2010 after he left BilltoMobile, which was purchased by Danal. His goal is to help reduce friction in mobile payments and raise the level of the free-to-play game business &amp;8212' and other electronic commerce businesses &amp;8212' to the same kinds of numbers that exist in Asia and Europe. KreditFly works with all mobile carriers in the U.S. Kim said that KreditFly has applied for patents on the Micro-credit system. Over time, the company will expand beyond game merchants.The company has raised a round of funding from Altos Ventures and ATA Ventures. KreditFly has 20 employees.Next Story: Dreaming of a white iPhone Previous Story: Deals &amp;038' More: VillageVines grabs $3M so foodies can dine with discounts, EndoSphere gets $1.3M to help you slim downPrintEmailTwitterFacebookGoogle BuzzLinkedIn      DiggStumbleUponRedditDeliciousGoogleMore&amp;8230'          Tags: mobile paymentsCompanies: Boku, KreditFly, ZongPeople: Paul Kim          Tags: mobile paymentsCompanies: Boku, KreditFly, ZongPeople: Paul KimDean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.VentureBeat has new weekly email newsletters.  Stay on top of the news, and don't miss a beat.<br/><br/>0 Vote(s) ]]></description>
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