China in the Information Age: Telecommunications and the Dilemmas of Reform
This is a detailed, informative account of the rapid modernization of China's telecommunications industry by two communications specialists. Unfortunately, and not unexpectedly, its political judgments are crude. China has installed more than 73 million phone lines in the last 5 years. This is more than the rest of the developing world combined. More than 84 percent of China's long distance networks are digitalized. Some 19 of China's provinces are now linked by 4,000 digital satellite communications circuits. And although 75 percent of China's rural villages still had no phone service in 1995, 500,000 villages are scheduled to be served by low-cost satellite communications networks soon. Although cellular phone service is still in its infancy in China, by the spring of 1996, it was already among the five largest markets in the world, with 4.7 million subscribers. There will be 18 million subscribers by the end of the century. To conclude, as the authors do, that these developments will not undermine China's political system and that China will remain a "communist" dictatorship, is probably true but beside the point. The real question is how the information revolution will influence Chinese society and politics when the regime can no longer monopolize sources of information.
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The Chinese Communist Party is simultaneously fostering the growth of the Internet and weaving a web of regulations to limit network content and use. But regulations cannot entirely block Internet communication, and the state's previously solid control over information is shifting to the citizens. If a future economic or political crisis spurs a challenge to party rule, this shift in information control may decide the outcome.
China has achieved stunning economic progress since the 1970s, thanks to aggressive liberalization, a commitment to exporting high-tech goods, and a massive injection of foreign investment. Although this unprecedented success is understandably unnerving to China's neighbors and trading partners, it should not be cause for worry; China, the United States, and the rest of the world still have lots of business to do.
In a bid to end its dependence on foreign intellectual property and become a global power in science and technology, China is attempting to foster indigenous innovation. Are the U.S. government and business community right to be worried about threats to free trade and intellectual property rights?

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