Capitalism, Capos, or Cop-Outs?

The U.S. Congress is facing more than issues of the Internet in China. It is facing the very core of whether the U.S. is serious about its values, including its commercial values. Further, the same technology and business practices at issue with China are directly complicit in the counter-attacks against decency and democracy from MidEast satrapies using these technologies to filter what their state-incited “street” hears and sees.

Don’t make a mistake: U.S.-based multinationals value profits above decency or democracy, or the free values under which they prosper. And, tragically, as history will write, many Congressmen may also.

Are we believers in free capitalism, or its subversion into being enablers of repression, or just hypocrites?

CNET reports that the draft legislation to support American values in our trade with repressive regimes “could face opposition from a broader alliance of U.S. companies because it is written so broadly.”

A China-blog comments:

Unfortunately, the sad fact is that adhering to an American code of ethics and doing business in China is like trying to mix oil and water. You simply have to bite the bullet and pay the bribes and deal with the corruption and facilitate the censorship if you plan to set up shop there.

Rebecca MacKinnon hopes:

I would like to see detailed analysis from all potentially affected U.S. technology companies as to whether they think this legislation would enable them to continue doing business in China, but more ethically. Several companies have said they would welcome legislation that would hold U.S. companies to common ethical standards. So now I hope that American corporations will engage with lawmakers to craft the most effective legislation that enables them to do good while still doing business. I agree, it is better for them to be engaged with China and doing business there rather than not. The issue is with the specifics of their businesses and business conduct.

Yesterday, I pointed at the first sign of capitulation in Congress:

South Florida Republican Congresswoman Illena Ros-Lehtinen is introducing similar legislation, but watered down for ideologic "free-traders" and for those whose bread is buttered by hi-tech. She is a member of the House International Relations committee, who is vying with Congressman Smith for the future Chair of the Committee, by -- in effect -- trying to steal his thunder that Smith has worked so hard to accomplish for the spread of democracy abroad and international human rights. If conservative Republicans line up behind Rep. Ros-Lehtinen, they will be deserting the rest of the Party and weakening its principles and appeal. Republicans should not be doing Bill Gates favors. Republican House leaders, hear this, please.

The U.S. Trade Representative points at the one-way street that trade with China has taken, and China’s resistance at living up to the pledges it made in being allowed to join the World Trade Organization:

China's continued intransigence over free trade issues, including intellectual property rights, dictates a "readjustment" in American policy, U.S. Trade Representative (USTR) Rob Portman said today.
In a USTR report released to Congress, Portman said that the 25-year-old U.S. policy of economic engagement with Beijing is in danger in the absence of "tangible evidence" of Chinese reform.
"As a mature trading partner, China should be held accountable for its actions and required to live up to its responsibilities, including opening markets and enforcing intellectual property rights," Portman said at a Washington press conference. "We will use all options available to meet this challenge."
In particular, the report states, China's focus on export growth and developing domestic industries is not being matched by a comparable focus on fulfilling market-opening commitments and on the protection of intellectual property and internationally recognized labor rights.
"Despite three consecutive years of growing U.S. exports to China, our bilateral trade relationship with China today lacks equity, durability and balance in the opportunities it provides," said Portman. "The time has come to readjust our trade policy with respect to China."

UPDATE:
Broader issues than the Internet or China are involved. See Judith Klinghoffer, "State Owned Companies Must Be Treated Differently," at History News Network. Unfettered pursuit of profits, or national security? That's the issue. What happens abroad, comes home.