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Google threatens to quit China

Internet giant Google Inc on Tuesday made a shock threat to quit China, the world’s biggest Internet market by number of users, after hackers accessed human rights activists’ e-mail accounts.

“These attacks and the surveillance they have uncovered — combined with attempts over the past year to further limit free speech on the Web — have led us to conclude that we should review the feasibility of our business operations in China,” Google chief legal officer David Drummond said in a statement.

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PRC surprises with early increase in bank reserve ratio

China yesterday raised the proportion of deposits that banks must hold in reserve in the clearest sign yet that it has started to tighten monetary policy with its economy roaring back to the brink of overheating.

The 0.5 percentage point increase in the reserve requirement ratio (RRR) will take effect on Monday and will apply to all banks apart from rural credit cooperatives, the People’s Bank of China said on its Web site.

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Newsflash

A leaked US cable shows that American Institute in Taiwan (AIT) Chairman Raymond Burghardt warned President Ma Ying-jeou (馬英九) in 2007 that cross-strait dialogue on various issues, including a peace agreement, could be at the expense of US arms sales to Taiwan.

Following heated debate on whether to start political talks with China that could potentially lead to unification if Ma is re-elected in January after he proposed the idea on Monday, Ma said on Thursday that a pact would not be signed unless strict prerequisites were met.