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China In the Habit of Copying and Redirecting US Sites?

Want to know why US web companies have trouble making it in China? gaz_hayes passed us a link to the blog commiepod, which suggests that successful US websites are targeted by 'Chinese government backed companies.' "These companies copy the site, deploy it on a .cn domain, and then DNS poison or forcefully lower the bandwidth the US site. Just a few weeks ago google.com and google.cn were DNS poisoned across the entire Chinese internet and were being redirected to their Chinese competitor Baidu. This probably explains Google's 3rd quarter market share in China." This is a fairly serious accusation; anyone else have first-hand experiences that would back this up?

30 of 468 comments (clear)

  1. Chinese "capitalism" is still largely an illusion by MikeRT · · Score: 5, Insightful

    China proves that Fascism, not Socialism, works. China is a vindication of everything the post-Socialist Fascist movement thought was in need of change in Socialist ideology to make it work. As a result, China has many of the benefits of capitalism, but has the state control of the means of production that Socialism provides. If it's mostly high-ranking aparatchiks and military officers who own most of the corporations in China, it is only semantically different from the corporation, known as the "Communist State" in China, from owning it in its name.

    Of course this would be a surprise to the morons who think that Fascism is just a dirty word you throw at someone you disagree with. Most people forget that Fascism was a movement with a clear-cut platform, that was a true hybrid of Socialism and Capitalism. It is "right-wing" in the sense that it is "to the right of Socialism and Communism." It is, in essence, where the "left and right" meet up on the spectrum. If you look at the Fascists' planks, you will see that they had many left-wing tendencies, such as seizing the war profits of the military industrial complex, heavy taxation of income, and strong government **control** of the means of production through counsels of industry and regulations.

    Communism is utopian. It is built on 19th century pseudo-science, and it ought to be no more respectable to be a Communist than to be a Phrenologist.

    I am not surprised at China doing this. It make perfect sense from the economic nationalism of Fascist policy.

  2. Already researched in 2002 ... by foobsr · · Score: 4, Informative

    "Replacement of Google with Alternative Search Systems in China — Documentation and Screen Shots"
    http://cyber.law.harvard.edu/filtering/china/google-replacements/
    Last Updated: September 24, 2002

    On this basis: "Google censors itself for China" — http://news.bbc.co.uk/1/hi/technology/4645596.stm — Wednesday, 25 January 2006

    Define ethics and business ethics within the context of a multi-billion dollar market. Do not be shy!

    CC.

    --
    TaijiQuan (Huang, 5 loosenings)
  3. quite. by apodyopsis · · Score: 5, Informative

    No surprise.

    I used to work in China quite alot and found the only way I could get decent Internet access and get things done was to VPN back to the UK office and then surf from their gateway - the slight delay was quite alot better then the local service.

    I got used to shitty performance, websites suddenly dying for no reason, 30 second delays on some sites and others almost instant.

    As with most things Chinese, we may see this at dodgy behavior - to them it is a normal business practice. As I once stated on a thread about Chinese knockoffs the problem is not to "stop them doing it" but is rather "to make them understand they are doing something wrong in the first place".

    1. Re:quite. by Anonymous Coward · · Score: 5, Funny

      I got used to shitty performance, websites suddenly dying for no reason, 30 second delays on some sites and others almost instant.

      They use Comcast in China, too?!

  4. Re:Chinese "capitalism" is still largely an illusi by Tablizer · · Score: 4, Insightful

    Communism is utopian. It is built on 19th century pseudo-science, and it ought to be no more respectable to be a Communist than to be a Phrenologist.

    All economic and political models are NOT true science anyhow. All economic and political models benefit different people in different ways and no math will tell you the "right" way unless you first prove that person X deserves more than person Y (or that there "should" be an imbalance in the first place). Plus, much of economic models depends on consumer psychology, which is also a fuzzy science. At best models may tell you how to maximize something based on assumptions, but those assumptions and the weights on them are usually subjective.

  5. Re:Sheesh... by Shakrai · · Score: 4, Insightful

    It's almost like the Chinese are a little leery of the US having a very large amount of control over the Interne

    Oh, give me a break. This has nothing to do with being leery of the US and everything to do with wanting to undermine foreign businesses while promoting local ones. It's not like Google would be any less of a target if it was a British company....

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  6. My stuff got copied by harmonica · · Score: 4, Informative

    Someone has copied a number of pages from my site. A link to my original URL was included, though. When I finally found a mail address, the person replying was apologetic and claimed to only have done it because my pages were so slow to access from China. He/She removed the page, but there were copies later of other pages. I gave up asking for removal -- it cost me a lot of time just finding the mail address in that case. Everything is in Chinese. It's a bit annoying, but there's not much I think I can do and I don't think anyone's trying to steal from me.

    1. Re:My stuff got copied by pikine · · Score: 5, Interesting

      In the Chinese net culture, full-text being copied and pasted is a compliment, showing popularity of the work. You always find the work of popular online novelists "mirrored" on multiple websites. People usually acknowledge the author but does not always provide a URL reference. Plagiarism, or more specifically, defrauding the reader of authorship of the work, usually isn't the motivation.

      This copy and paste culture can be traced to two historical reasons: (1) before printing press was invented, literature was only distributed by unregulated hand-copying. This is what student used to do in school. By the time you finished school, you would have copied a number of literature works by hand. And (2), private, unregulated hand-copying is the only way literature can survive over several oppressive emperors.

      The former practice can still be seen prevalent in many CJK education system nowadays, where students are asked to manually copy some text on a regular basis as a part of the learning process. The latter reason still applies today as well; you'd see full-text of an article posted on an online BBS forum only to be taken down later by the authority, and someone posts the full-text again on another BBS forum.

      In addition, copyright and authorship are separate issues. Interestingly, the British first invented copyright in order to allow the royalty to regulate printing of books (i.e. for censorship). Copyright granted the print shop a license to print a work. Without a license it would be illegal. Copyright was not invented to protect authorship.

      In conclusion, it is not that the Chinese does not respect authorship. Copyright is simply unsuitable under the historical and cultural context. This seems to chime with the notion that real man upload his code on FTP and let everyone else mirror it, as said by some Linus dude.

      --
      I once had a signature.
  7. Re:They do worse things by Gigiya · · Score: 5, Funny

    Yes.

  8. Donald Trump says China rigs the rules by Tablizer · · Score: 5, Interesting
    http://archive.newsmax.com/archives/ic/2006/10/9/230755.shtml?s=icp

    Excerpt:

    America's middle-class was shrinking as the country lost its manufacturing base and jobs to inexpensive imports, Trump said in an interview at his Manhattan office, pointing especially to China.

    "If you want to open a business in China, it is virtually impossible," Trump said. "And yet, if China wants to come here and do something, there is no problem whatsoever."...

    "China is doing a major number on the United States," Trump said. "If we had politicians that knew what they were doing, they would stop that so fast that your head would spin."

    1. Re:Donald Trump says China rigs the rules by ChronosWS · · Score: 4, Insightful

      They don't have anybody by the balls. If they had us by the balls, they could stop producing/selling goods to us. They can't do that. Ergo, they don't have any more control than we let them have by mutual agreement. That's how it works with globalization. They play by the same rules, its just that for now we see value in the lower cost of goods from them.

      Yes, China can become a superpower perhaps. If they are smart, they won't bother with a huge military buildup a-la the Cold War because that's a true waste of money, and there is nothing to gain from it. Like the US, they don't really want to rock the boat *too* much, because uncertainty is just as bad for them as it is for us - after all you can't really do a good job of controlling your economy if you can't reasonably predict what is going to happen in the next few years.

      The only 'danger' there is is that China will truly have to be dealt with as an equal and respected as a technological force - eventually. That's not a bad thing, it can only help all of us to have another set of bright people building stuff.

    2. Re:Donald Trump says China rigs the rules by MrSteveSD · · Score: 5, Insightful

      To be fair, both the US and EU are guilty of this to some degree, but nowhere near what China does.

      You have to be joking. Aside from Tibet, how many countries has China invaded in the last 50 years? The US has thrown it's weight around enormously more than China, right from installing Dictators (e.g. Shah of Iran) to direct invasions and much of this has been about securing access to resources and markets. The US even engineered the overthrow of the Guatemalan government just so that United Fruits could avoid paying taxes. China's brutality is mostly internal, in contrast to the US which is free internally but brutal externally.

      The EU is not throwing it's weight around on a US level, but there are a few nasty examples. Britain was of course involved in the installation of the Shah of Iran (to secure access to the oil) but France has been waging a secret war in the mineral-rich Central African Republic for decades. Right now they have "peace keeping" troops there, but they used to control it directly and basically used the population as slave labour.

      I'm sure that if/when China starts overthrowing governments all over the Middle East and in South America, we kill kick up a huge fuss and be on the brink of World War 3, but western countries have been doing this sort of thing for the last 50 years or more. We don't complain about it too much because we are rarely on the receiving end of all the violence but if we were, we would probably be just as angry as people like Chavez and Ortega.
  9. Re:Sheesh... by Cassius+Corodes · · Score: 4, Insightful

    What's the point of weathering a backlash by doing business in china and acquiescing to the government demands of censorship if after all that they just stab you in the back anyway?

    --
    Control is an illusion, order our comforting lie. From chaos, through chaos, into chaos we fly
  10. I don't understand by shbazjinkens · · Score: 5, Funny

    How come there's no mention of this on slashdot.cn?

    1. Re:I don't understand by Goalie_Ca · · Score: 4, Informative

      Hah. slashdot.cn redirects to digbuzz which looks like a total rip-off of digg.

      --

      ----
      Go canucks, habs, and sens!
  11. Re:Chinese "capitalism" is still largely an illusi by leathered · · Score: 4, Insightful

    Mod up please.

    'Fascism should rightly be called Corporatism, as it is the merger of corporate and government power.'
    'All within the state, nothing outside the state, nothing against the state. '

    Two descriptions of Fascism by Benito Mussolini which apply to today's China perfectly. Though as you rightly point out meaning of the word Fascist has been lost on those who nowadays use it merely as an insult. Those same people are those who usually cannot accept that China is the archetypal Fascist state, in my view even more Fascist than Italy ever was in the 20s.

    --
    For all intensive porpoises your a bunch of rediculous loosers
  12. Re:They do worse things by theodicey · · Score: 4, Insightful

    Without access to the uncensored real Internet, how exactly do you think Chinese people will find out about the atrocities committed by their government in their name?

  13. Re:And yet.. by Dunbal · · Score: 4, Insightful

    We (as a nation) still buy "Made in China" crap and help support their economy.

          You really don't understand globalization, do you?

          The Made in China "crap" is:

    a) probably made by a US owned Chinese company or a Chinese company that bought technology/equipment from US firms, or licensed from a US company that gets a cut of the profits.
    b) made for a lot less than any other country could ever DREAM of to produce it

          The best bit is - China is only STARTING to become industrialized. They (along with India) have the potential to dominate the entire world economically. Sure, as an American you can "boycott" China. But Europe won't. Russian won't. The third world (which is starving for cheaper goods) won't. The only thing you will be doing is digging your own grave.

          Globalization brings countries together. How can you go to war with a country that sells you the products you need, and buys the technology you produce, and imports raw materials from you, and exports engineers to you, etc etc etc.

          Oh wait, war is about politics, and politicians are rarely rational. Sure, go ahead and call for a boycott then. Pardon me if I snicker when you shoot yourself in the foot.

          Oh, and I'm Canadian, not Chinese. Not a drop of oriental blood.

    --
    Seven puppies were harmed during the making of this post.
  14. Re:Sheesh... by Anonymous Coward · · Score: 4, Insightful

    posting as anonymous coward for obvious reasons:

    Doing business with china regularly, it's just how they operate. to them its normal practice. if it's to their advantage they will do something, if it isn't they won't

    Like getting senior execs of a certain, now defunct, british car manufacturer drunk and signing away the company without reading the small print (note they expect foreign companies to follow the rules) *** allegedly ***

  15. Re:Chinese "capitalism" is still largely an illusi by tftp · · Score: 4, Interesting
    Socialism has at least one major fault: it depends on people taking their share of the common wealth, proportional to their contribution. Needless to say, this is impossible on every account. A genius scientist can be entitled to millions of dollars, but he is not married, lives at his lab and needs nothing. A family of janitors with 8 kids needs everything they can get from the society, and they are hardly earning anything from the society for their work.

    This is an imbalance that was counter to the proclaimed idea of equality, and it was very real in the USSR. In Stalin's time, for example, a professor could afford a personal chauffeured car, a maid or two, and the best living accommodation - this was when people were paid for their worth. After Stalin things changed: a scientist went hungry (130 R/mo) and an uneducated metal worker at a factory (400-500 R/mo) started buying cars, dachas and tourist trips. This was one of those things that doomed the USSR; I can't imagine a more stupid idea than to herd your best and brightest into the lowest class. Many of them escaped to Israel and the USA as soon as they could; it was simply insulting for them to remain, be paid a pittance, and see their skills wasted on picking up potatoes in the field with locals just sitting around, smoking and crudely joking about it.

    Communism goes even beyond that; but enough to say that Communism is based on the concept of unlimited availability of all worldly goods, and on unlimited consumption of those as your needs dictate. We can see Communism practiced on board of Enterprise in Star Trek, for example. Crew members can replicate anything they want and build whatever they like; use Holodecks as much as they want; and they are careful enough to take only what they really need, and not more. This is currently impossible because of many reasons, with unlimited availability of everything as one quite obvious example, and with a need for a "new human" as another concept that has no basis in reality.

    Communism (or socialism) works for ants, but humans are possessive animals, with urge to own everything and control everything. You can't build socialism with those humans. But at least the basic capitalism can channel those human urges to the greater good of the society; socialism and communism just pretend that those urges do not exist. Capitalism is simply socialism with a working method of enforcing the rules.

  16. Re:Baidu part owned by Google, no? by Alascom · · Score: 4, Informative

    Google owned 5% of Bidu at the IPO. They sold their interest in Bidu almost 18 months ago.

  17. Re:Chinese "capitalism" is still largely an illusi by tjstork · · Score: 4, Interesting

    China proves that Fascism, not Socialism, works. China is a vindication of everything the post-Socialist Fascist movement thought was in need of change in Socialist ideology to make it work. As a result, China has many of the benefits of capitalism, but has the state control of the means of production that Socialism provides.

    No, it doesn't, by any stretch of the imagination. All China has proved that some organized method of industrialization proves an increase in the standard of living and wealth of a nation. Really, prior to the mid 1980s, China was so screwed up that just about means of exporting goods to the USA would improve them.

    Seriously... this sort of myth was really born of the "Hitler Miracle", about, how the Nazi regime supposedly turned the German economy around in the midst of the Great Depression. Sure, Nazi propaganda would have us believe the in the midth of Hitler's German economic juggernaut, but the truth is, if you look at the statistics - EVEN THE BRITISH WERE OUT PRODUCING THE GERMANS. I won't belabor the point of American production, because the Americans had population and other advantages over Germany. Instead, let's look at the British, whom had less population, less natural resources, and still managed to produce more aircraft and more warships than the Germans, ultimately cutting Germany off from the sea and then taking Germany out of the air.

    Essentially, all Germany could do was build a bunch of U-Boats that were just facelift improvements from World War I designs (the "modern" U-Boat came way too late to make a difference). Germany built two primary battleships - Bizmarck and Tirpitz. By contrast, the British built 5 battleships of the KGV class, more than a few aircraft carriers, and plenty of not only fighters, but also four engine heavy bombers. Germany could never build 4 engine bombers in number, becuase despite having an entire continent at her disposal, the Germans always had engine shortages...

    And, why was that?

    It's because fascism is a crooked and corrupt institution, and crooked institutions are not efficient. Tales of Nazi looting of other countries abound, but there was massive disorganization, massive crime... really, just imagine a bunch of thugs in a command economy, telling corporate bosses what to produce for war armaments... eventually, the whole thing would collapse... as indeed, it would have, under its own weight, had not the weight of a few million Allied soldiers and thousands of tons of Allied bombs not helped it along.

    And that's ultimately what's going to happen with China. Already, rumours abound about problems in the Chinese banking sector, there's inflation being swept under the rug, and there's all sorts of inefficiencies creeping in that are just swept under the rug.

    Bottom line is, fascist regimes always produce good economic results, only because we believe them when they tell us that we do. At some point, freedom really -does- matter, and that will catch up to China.

    --
    This is my sig.
  18. Re:Baidu part owned by Google, no? by TeraCo · · Score: 4, Insightful

    Ports, Airlines, etc ARE strategic resource. Imagine if China presses for some trade advantage from the US and is rebuffed. If they had the ability to go close some of your major ports, you'd be feeling the pain really quickly.

    --
    Not Meta-modding due to apathy.
  19. Re:They do worse things by Dunbal · · Score: 5, Insightful

    oh please, how can you even compare the US to the Chinese...

          Native Americans? African Americans?

          Every empire has to crush a few people to establish itself. Enough of the double standards already.

    --
    Seven puppies were harmed during the making of this post.
  20. More like just massive corruption, IMHO by Moraelin · · Score: 5, Insightful

    Honestly, the more I hear about China, the more it sounds like the (stereo)typical massive corruption scenario.

    I.e., no need to assume that there's some government hand behind it, or some meaningful form of protest against the west. It can be simply that some guy running their DNS servers/proxies/great-firewall/whatever got a nice bribe to redirect the lookups to someone selling the same kind of product, or an importer, or really whoever was willing to pay.

    The way the kleptocracy/corruption scenario goes is, basically, it doesn't matter how much you're paid, it only matters how much you can steal/embezzle/get-as-bribes. Whole hierarchies are formed where any job worth anything (in loot/bribes/whatever) is essentially either given to party leaders' relatives or auctioned to the highest bidder. And then it's considered pretty much normal and expected that you'd get your money back, and a nice profit, by stealing/embezzling/demanding-bribes/etc. Whatever works, really.

    My favourite example of what corruption _can_ do, and incidentally also is (A) about China, and (B) nicely illustrates that there is no need for it to even be motivated by some higher ideals or nationalism, is the Battle of the Yalu River in 1894.

    Among various surrealism of it all, many shells used by the Chinese fleet were filled with sawdust or cement, because some enterprising souls in the navy had embezzled the funds for cordite and split the loot with the manufacturer. Or stuff as monumentally surrealistic as that a battleship was missing two main guns, which again had been stolen and sold on the black market. Yep, you've read that right: big f-ing guns off a battleship, simply dismantled and sold on the black market.

    You also find such surrealistic stuff, as that the fleet's second in command -- no doubt, some fellow with either high placed relatives, or who bought the job fair and square -- deliberately didn't relay the order to deploy into battle formation. The formation where the big ships could fire at the Japanese was also the formation where the Japanese could fire at the ship he's on, and, you know, he wasn't going to do stupid stuff like risk his own life for his country. At any rate, someone felt protected enough to ignore a direct order, even if it cost the country a humiliating defeat.

    That's the kind of thing that corruption can do. Someone didn't give a fuck about their country or about sticking it to the foreigners. They just cost their country a humiliating defeat, simply because, you know, there was something to steal or he had bribed someone powerful enough to ignore a direct order.

    So, regardless of whether you wish to see a continuity of that in China or not, well, that's how far corruption can go.

    And you don't even have to look one century back, the (ex)communist block provides a ton of more recent examples. And not even just the commies. Just about anywhere where some people were given enough unchecked power, some enterprising souls proceeded to sell their influence for cash. With similar results.

    The more devastating result being that they invariably destroyed a whole country's culture in the process. The little guys were allowed to steal or get a bribe worth maybe 1$, so they wouldn't mind when the party leaders stole a million bucks in one fell swoop.

    So now look at this particular incident, and you tell me if you really need some higher reason or motivation than bribe to explain it.

    It's freakin' sad, that's what it is.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  21. Re:Chinese "capitalism" is still largely an illusi by tftp · · Score: 4, Interesting
    It is interesting that you mention that, but in the old USSR there was a central repository of all the software written by anyone in the country, and programmers were encouraged to participate by submitting their projects and by reusing existing code. Before the Internet, of course, it was not very user-friendly (mail, paper, tapes.) But since the State owned everything, there was no issues with ownership of IP. It was 100% Communism in this specific area.

    But of course you refer mostly to the modern situation, where F/OSS distribution model has certain likeness of Communism (from everyone according to his capabilities, to everyone according to his needs, and there is no Government.) I guess the p1rate scene also follows, including music, at least on the consumption side.

  22. Some real info by Conspire · · Score: 5, Informative

    OK, I see a lot of posts here with some misleading info. Just to clear the air:

    1. Foreign companies can own 100% of China enterprises (in some industries), and this is called a WOFE (Wholly Owned Foreign Enterprise)

    2. For any company to operate a web site in China, they need an ICP (Internet Content Provider) license.

    3. Only domestic PRC entities (citizens), can get an ICP license (any foreign ownership and ICP license cannot be issued)

    4. There are ways around #2+#3, through a legal loophole which is quite simply, a) the foreign company has their in country manager or other domestic person setup a 100% domestic owned PRC company to get the ICP license. b) the foreign company has a proxy agreement and share pledge with the "official" shareholder(s) of that PRC domestic company which are side contracts giving control and management of the domestic company to the foreign owned (WOFE) of the foreign investors. c) The WOFE also has a contract with the PRC company to extract all revenue out through a "technical services and management agreements". d) The WOFE then is able to book all the revenue from the company, making it a synthetic subsidiary and thus getting around all the laws forbidding foreign investment in the PRC company. (interesting note, this structure was designed in the 70's to get around foreign investment limitations in petrochemical industries, and is now used by all the major internet and game companies listed abroad, ie: tom.com, sina.com, snda.com, Google, Yahoo etc.)

    5. The telcos here (China Netcom and China Telecom) often seem to re-direct traffic as the post claims. I have seen google.com traffic redirected for an entire weekend to 114.cn, which is China Telecom's lame search engine! Baidu.com redirect I see much less often. There are also many others for instance ALL traffic was redirecting to Yahoo.cn on my cable broadband connection from my house yesterday, no idea why Yahoo.cn, but it was.

    6. A lot of traffic to the China internet portal kings is fake, by fake think how gold farming in MMOGs works, people playing for gold and getting paid 0.50 cents an hour to play in China. I have heard *rumors* from insider friends saying that many portals pay people the equivalent to click on links all day.....think market cap and ad revenue reporting.....it would not surprise me in the least but I can't say I have seen it personally.

    --
    Real men don't need signitures!!!
  23. First Hand by A+Guy+From+Ottawa · · Score: 4, Funny

    When I was in China last April and went to slashdot I got redirected to some site all pink and pretty. If I remember correctly it was about ponies. I thought at the time it was strange but now I know it was the gvt.

    --

    using System.Awesome;

  24. Re:Baidu part owned by Google, no? by porpnorber · · Score: 5, Interesting

    Welcome to globalisation, America. It's a good thing, remember? Petty national interests, including your petty national interests, need to become a thing of the past. And the view that shipping is a strategic resource and communication is not is bizarre beyond belief, moreso in a democracy such as you supposedly inhabit.

    Ports, Airlines, etc ARE strategic resource. Imagine if China presses for some trade advantage from the US and is rebuffed. If they had the ability to go close some of your major ports, you'd be feeling the pain really quickly.

    Then, and if it ever came to that, I think that's ultimately why you have an army. Defending your own ports is certainly a better use for it than, say, overthrowing foreign governments because you think you can embarrass the French by showing the world that they are as moronically unethical in their arms sales as you are, when actually they aren't....

    Yeah, yeah, it's a troll... but I am so tired of this doctrine that freedom of movement, freedom of trade, the rule of law, democracy, freedom of speech and the right to a good cup of coffee are to be the goals of the entire world, but only in so far as they inure solely to the benefit of the USA.

    As far as I can tell from non-US, non-Chinese news sources, the Chinese are presently trying at least as hard as the US to put their house in order. Their priorities may be different from yours, but yours are different from theirs, right? When CNN is a better news source than the Daily Show, maybe we can talk about Chinese information policy. When American corporations stop bullying foreign governments, we can talk about how foreign governments should be nicer to American corporations.

    ...And to those many readers who are American and not insane, look, I apologise for frothing at the mouth. I know it's worse for you than it is for me.

  25. Corruption is not limited to Chinese nationals by Conspire · · Score: 4, Informative

    Note that some of the biggest corruption I have seen in China are orchestrated with the help of US and other foreign investors, corporations, etc.

    Take for example a large NASDAQ listed company, that was under internal investigation last year. I can't name names, but this is second hand knowledge from someone I know involved as a customer to this company and questioned in the investigation. Here goes:

    1. NASDAQ listed company founders and management write a huge option on their shares with a foreign bank. The shares are in lockup and due to be able to float in 6 months. The price that the bank pays, is based on a price they can sell (estimated) at the end of the lockup period in 6 months.

    2. Investigation begins, because of revenues being booked through companies the auditors (and competitors) have never heard of. It comes to light in the investigation, that the revenues are actually the proceeds from the share option sale (management and founders), to drive up stock price before the end of the lockup period.

    3. Underwriters, major investors (big names in US and Europe, can't say the names here) are all aware. Auditors are paid off. One board seat is changed. The truth is buried. The news never comes out because too many investors, banks would get burned.

    4. Stock still flying to this day. Fact is the company is a great model, but a big part of the accelerated growth prior to lockup expiring was fraud. Investors, bankers, underwriters knew it. Corruption on a mass scale involving US and European banks and investors.

    So, this is why I call China "the wild east". Things can go very backward fast and it is very hard to see the "real" picture in anything you do here.

    That being said, there are companies, like GE, that do very well in China while staying for the most part very "clean". It is not impossible to succeed in China without being corrupt. But the stories of corruption I have heard involving foreigners number at least on par with those involving locals only.............its a human disease not a "communist" or "socialist" or even "democratic" problem.....its human.

    --
    Real men don't need signitures!!!