DONNA KELLEY, CNN ANCHOR: China is being criticized for its new rules on Internet use. The government already controls what Web users can view, and now it's going a step farther. CNN's Allard Beutel reports that international businesses are worried that the new regulations will do more harm than good.</s>ALLARD BEUTEL, CNN CORRESPONDENT (voice-over): The number of officially registered Internet users in China jumped almost 9 million last year. And that number is expected to continue blooming. Chinese officials promote the Internet as a tool for economic development and international communication. But, at the same time, they actively control the flow of information on it. Internet companies are prohibited from posting items that haven't been cleared by the government. And, starting this month, international businesses that use computer encryption technology must register with Beijing. These new regulations are causing concern in the international business community.</s>MICHAEL FURST, AMERICAN CHAMBER OF COMMERCE: The regulations therefore require anybody who's using software to not only register, but in fact be licensed by the government.</s>BEUTEL: Since encryption technology is a key component of e- commerce, some companies say the new laws could restrict sales in China. They are also worried about the threat of commercial espionage and competition from state-owned Chinese firms with potential access to encryption secret registered with the government.</s>JAY X. HU, U.S. INFORMATION TECHNOLOGY OFFICE: A lot of people are worried about the regulations because of a lack of precise definition of the scope and the implementations procedure.</s>BEUTEL: But some Internet users in China support the new laws.</s>UNIDENTIFIED MALE (through translator): I think Internet registration is a good thing. But I hope that authorities will manage it well. Secrets should not be leaked out.</s>BEUTEL: The new laws also threaten to complicate China's efforts to join the World Trade Organization. Meantime, U.S. officials in Beijing are calling for talks with the government to help ease this latest trade dispute with China. Allard Beutel, CNN.
China's New Internet Regulations Worry International Businesses