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### Viewing cable 10BEIJING207, GOOGLE UPDATE: PRC ROLE IN ATTACKS AND RESPONSE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10BEIJING207 | 2010-01-26 10:10 | 2010-12-04 18:06 | SECRET | Embassy Beijing

`

    VZCZCXRO9839
    OO RUEHCN RUEHGH
    DE RUEHBJ #0207/01 0261055
    ZNY SSSSS ZZH
    O 261055Z JAN 10        ZDK
    FM AMEMBASSY BEIJING
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 7785
    INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
    RHEHNSC/NSC WASHDC IMMEDIATE
    RUEAIIA/CIA WASHINGTON DC IMMEDIATE
    RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
    RUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATE
    RHMFISS/CDR USPACOM HONOLULU HI IMMEDIATE

` `

    ID: 245489
    ORIGIN: XXXXXXXXXXXX
    DATE: XXXXXXXXXXXX
    SOURCE: Embassy Beijing
    CLASSIFICATION: SECRET
    MISC: XXXXXXXXXXXX
    DESTINATION: XXXXXXXXXXXX
    XXXXXXXXXXXX

    XXXXXXXXXXXX

    SIPDIS

    NSC FOR BADER, MEDEIROS, AND LOI

    E.O. 12958: DECL: 01/26/2030
    TAGS: ECON PGOV PHUM PREL EINV CH
    SUBJECT: GOOGLE UPDATE: PRC ROLE IN ATTACKS AND RESPONSE
    STRATEGY

    REF: XXXXXXXXXXXX

    XXXXXXXXXXXX

    Classified By: DCM Robert Goldberg.  Reasons 1.4 (b), (d).

    ¶1. (S) Summary:  A well-placed contact claims that the
    Chinese government coordinated the recent intrusions of
    Google systems.  According to our contact, the closely held
    operations were directed at the Politburo Standing Committee
    level.

    -- Another contact claimed a top PRC leader was actively
    working with Google competitor Baidu against Google.

    -- Chinese concerns over the recent Google threat to take
    down the company's Chinese-language search engine google.cn
    over censorship and hacking allegations were focused on the
    service's growing popularity among Chinese Internet users and
    a perception that the USG and Google were working in concert.

    -- An appeal to nationalism seems to be the Chinese
    government's chosen option to counter Google's demand to
    provide unfiltered web content.

    -- Contacts in the technology industry tell us that Chinese
    interference in the operations of foreign businesses is
    widespread and often underreported to U.S. parent companies.
    End Summary.

    Attacks Directed at High Level
    ------------------------------

    ¶2. (S) XXXXXXXXXXXX
    XXXXXXXXXXXX

    PRC Sees USG and Google Working Together
    ----------------------------------------

    ¶3. (C) XXXXXXXXXXXX
    XXXXXXXXXXXX told PolOff XXXXXXXXXXXX that
    Google's recent move presented a major dilemma (maodun) for
    the Chinese government, not because of the cyber-security
    aspect but because of Google's direct challenge to China's
    legal restrictions on Internet content.  The immediate
    strategy, XXXXXXXXXXXX said, seemed to be to appeal to Chinese
    nationalism by accusing Google and the U.S. government of
    working together to force China to accept "Western values"
    and undermine China's rule of law.  The problem the censors
    were facing, however, was that Google's demand to deliver
    uncensored search results was very difficult to spin as an
    attack on China, and the entire episode had made Google more
    interesting and attractive to Chinese Internet users.  All of
    a sudden, XXXXXXXXXXXX continued, Baidu looked like a boring
    state-owned enterprise while Google "seems very attractive,
    like the forbidden fruit."  He said it "seems clear" to the
    Chinese people that Google and the U.S. government were
    working together on Internet freedom and to undermine Chinese
    government controls on the Internet.  That made some
    intellectuals happy, XXXXXXXXXXXX said, but "some others" regarded it
    as interference in China's internal affairs.

    Industry: Interference Common, Paranoia Driving PRC Policy
    --------------------------------------------- -------------

    XXXXXXXXXXXX  002 OF 002

    ¶4. (C) XXXXXXXXXXXX
    XXXXXXXXXXXX (please protect) noted the
    pronounced disconnect between views of U.S. parent companies
    and local subsidiaries.  PRC-based company officials often
    downplayed the extent of PRC government interference in their
    operations for fear of consequences for their local markets.
    Our contact emphasized that Google and other U.S. companies
    in China were struggling with the stated Chinese goal of
    technology transfer for the purpose of excluding foreign
    competition.  This consultant noted the Chinese were
    exploiting the global economic downturn to enact increasingly
    draconian product certification and government procurement
    regulations to force foreign-invested enterprises (FIEs) to
    transfer intellectual property and to carve away the market
    share of foreign companies.

    Chinese Media:  American Hypocrisy and Cultural Hegemony
    --------------------------------------------- -----------

    ¶5. (U) The Secretary's speech continued to dominate headlines
    January 25-26, with the official People's Daily (circ 2.2
    million) alleging collusion between U.S. officials and the
    business community as evidenced by the propinquity of
    Google's rethink of its China business and the Secretary's
    speech.  Chinese media again accused the U.S. of "cultural
    hegemony" for setting the standards for "so-called Internet
    freedom8 and of hypocrisy for calling for the free flow of
    information while using the Internet as a political and
    military tool.  People's Daily-affiliated Global Times
    English (circ 150,000) called the speech a "milestone"
    showing that U.S. and Western political interests were
    "taking over every dimension" of cyberspace.

    ¶6. (U) The Party-affiliated Beijing News (circ 530,000)
    opined that the speech showed "a huge gap between Chinese and
    American information industries, which may lead to a trade
    war strategy."  In an article headlined "China Intensifies
    Counterattack on Internet Accusation," Global Times Chinese
    (circ 1.3 million) quoted Chinese scholar Niu Xinchun as
    rejecting the theory that U.S.-China conflict would replace
    the "G2" cooperation model, noting that U.S. attacks usually
    ended "poorly" when the U.S. considered its practical
    interests.  Many papers quoted statements from the State
    Council Information Office and Ministry of Industry and
    Information Technology calling Chinese Internet controls
    "legitimate" and saying they should not be subject to
    "unjustifiable interference."  Papers continued to conflate
    Google's China business strategy with the Secretary's speech.

    Blogging Circumscribed
    ----------------------

    ¶7. (SBU) Anecdotally, censors appear to have cracked down on
    blogging about the Secretary's speech.  XXXXXXXXXXXX
    XXXXXXXXXXXX  Secretary Clinton's speech is currently blocked
    in Chinese on state.gov but remains accessible on the U.S.
    Embassy website in both English and Chinese.
    HUNTSMAN

`