Variations on a theme

There's some more economic news today concerning China that's worth reading. USC economics professor Brad DeLong has an interesting editorial in the Tapei Times concerning the role of Chinese and American economic policies in encouraging recession or even a depression. Alibaba.com, a China-based B2B website, debuted on the Hong Kong exchange yesterday, and saw its share prices triple.

In non-economic news, the House Foreign Affairs Committee had a good time beating up on Yahoo's Chief Executive and General Counsel concerning Yahoo's role in the jailing of a Chinese dissident. The best part of the hearing, for me at least, was when Congressman Tom Lantos yelled at Yahoo's GC, saying, "Why do you insist on repeating the phrase 'lawful orders'? These were demands by a police state!" (This from a man who, like Joe Lieberman, bears a striking resemblance to Emperor Palpatine.) Oddly enough, Tom, it turns out that other countries have laws too, and sometimes they don't mesh with American moral values.

This is not to say I disagree with the main thrust of the hearings. What I disagree with is Congressmen placing companies between a rock and a hard place with poorly-crafted legislation. I do not think that we need to force U.S.-based Internet businesses, which already have enough trouble complying with conflicting international standards, into carrying out U.S. foreign policy. I also don't think that we should be relying upon Presidential designations of "Internet restricting countries" (whatever the heck that means) to hold companies legally liable. In addition, I worry that U.S. companies will outsource our personally identifiable information to non-U.S. businesses solely to avoid the ambit of Representative Smith's bill, which targets companies incorporated in the U.S., listed on a U.S. exchange, or owned by a U.S. company. (See section 3, paragraph 11, which defines the term "United States business") Finally, I question the wisdom of a particular provision in the bill that would allow for civil lawsuits against companies that violate the Smith's bill. In sum, this particular issue seems better suited to international diplomacy than federal civil law.