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DATE=1/27/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA-INTERNET (L-O)
NUMBER=2-258473
BYLINE=STEPHANIE HO
DATELINE=BEIJING
CONTENT=
VOICED AT:
INTRO:  China is defending new rules imposed on the 
Internet, saying they are aimed at protecting state 
security.  V-O-A's Stephanie Ho reports from Beijing, the 
Chinese government says the new controls should not worry 
foreign companies that want to do business in China.
TEXT: Chinese Foreign Ministry spokesman Zhu Bangzao refused 
to discuss the reasons for the government's decision to try 
to tighten control of the Internet. On Wednesday, the 
government published a new set of rules for the Internet 
which critics say could have a chilling effect on both 
business and personal use of the web.  But Mr. Zhu -- 
speaking through an interpreter -- defended Beijing's 
actions.
            // ZHU INTERPRETER ACT //
What I would like to say is that recent years have seen the 
rapid development of Internet in China.  The measures we 
have taken in this regard are very positive.  I think that 
for any country, they will adopt necessary policies in terms 
of protecting state security.
            // END ACT //
The Chinese spokesman expressed his government's hope that 
the new rules would not frighten away foreign businesses.
            // ZHU INTERPRETER ACT //
This will not hamper the process of foreign companies 
entering into China.
            // END ACT //
Mr. Zhu did acknowledge, though, that what he referred to as 
"irrationally encrypted commodity exchanges" will be 
affected.
New regulations require all companies in China to provide 
the government extensive information about their encryption 
software by January 31st.  Encryption software enables 
people and businesses to send confidential information and 
financial data safely over the Internet.
The regulations also mandate that all electronic products in 
China use encryption software manufactured in China.
Other new rules, that retroactively went into effect at the 
beginning of the year, were outlined in a report Wednesday 
in the People's Daily -- the flagship paper of the ruling 
Communist Party.  
The report said any information released over the Internet 
must first be approved by Chinese security authorities.  It 
added that operators of Internet chat rooms or online 
discussion groups must undergo security checks.
The regulations say any discussion or dissemination via the 
Internet of what the government considers a state secret is 
forbidden and grounds for punishment.
Internet use in China has grown significantly in recent 
years.  Official Chinese media say there were nearly nine 
million Internet users in China by the end of last year -- 
more than four times as many as the year before.  (signed)
NEB/HO/FC     
27-Jan-2000 06:06 AM EDT (27-Jan-2000 1106 UTC)
NNNN
Source: Voice of America
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