China services growth adds to economic revival hopes






BEIJING (Reuters) – Growth in China‘s increasingly important services sector accelerated in December at its fastest pace in four months, adding to signs of a modest year-end revival in the world’s second-largest economy.


China’s official purchasing managers’ index (PMI) for the non-manufacturing sector rose to 56.1 in December from 55.6 in November, the National Bureau of Statistics (NBS) said on Thursday.






Two PMIs on the manufacturing sector earlier this week also suggested China’s economic growth was picking up late in 2012, although signs persist it depends primarily on state-led investment.


Data so far suggests only a muted revival in economic growth, rather than a return to the double-digit pace seen in China over the past three decades, Hong Kong-based economist Dariusz Kowalczyk said.


“Absolute levels of both December manufacturing and non-manufacturing PMIs remain relatively low by historical standards and consistent with only modest rebound in economic activity,” Kowalczyk, Credit Agricole’s senior economist for Asia except Japan, said.


He said economic growth picked up in the fourth quarter of 2012 after sliding for seven straight quarters, but in sharp contrast to China’s previous, more pronounced bull runs, it could fade after the first quarter of 2013.


The greatest driver in the pick up in the non-manufacturing sector in December was a jump in construction services to 61.9 from 61.3 in November. Industries including transport slumped, the NBS said in an accompanying statement.


A reading above 50 indicates growth is accelerating, while one below 50 indicates it is slowing.


The strength in construction services is consistent with other indicators, including rising land prices, that point to a revival in China’s property markets, which support about 40 other industries. Signs of a pick up come despite central government protestations that it will not relax credit and purchasing curbs that have stifled the sector in the past two years.


The transport slowdown is also consistent with weak demand for China’s exports in the face of euro area and Japan recessions and an uncertain fiscal outlook in the United States.


SERVICES GROW IN IMPORTANCE


The official manufacturing PMI survey in December matched November’s seven-month high of 50.6, the NBS said on Tuesday, while a complementary survey with a greater focus on the private sector reached 51.5, its highest since May 2011.


China’s fast-growing services industry has so far weathered the global slowdown much better than the factory sector, with the PMI consistently signaling healthy expansion and hitting a 10-month high of 58.0 in March.


That’s partly due to a maturing economy as well as a historic shift in the last decade leading a majority of Chinese to live and work in cities rather than the countryside.


China’s services sector generated 43 percent of China’s GDP in 2010 and by 2011 provided nearly 36 percent of new jobs, exceeding the agricultural sector for the first time.


Beijing has acknowledged that greater consumer activity is needed to reduce the economy’s reliance on the exports sector and investment-led growth.


“Expanding domestic demand will be a major stimulus for China’s economic growth, and the greatest potential will come from the service sector,” Xia Nong, deputy director-general of the Department of Industry under the National Development and Reform Commission, said on Friday, according to the China Daily.


Xia pledged to open the services sector to more foreign competition as well as encouraging Chinese service firms to go overseas.


Foreign investment into the service sector of $ 47.57 billion in the first 11 months of 2012 surpassed that directed to the manufacturing industry, which slumped by 7.1 percent, the China Daily said over the weekend, citing Ministry of Commerce data.


The growing services sector has taken up some of the slack from the property sector, which has struggled with investment and purchasing restrictions as well as a credit crunch.


Overseas company investment into China’s urban transportation surged 24-fold in the first 11 months from a year ago, followed by a 12-fold rise in telecommunications and other information services, and a sevenfold increase in pipeline transportation industries, at sevenfold, the China Daily said, again citing Ministry of Commerce figures.


The sector, formerly the bastion of smaller private businesses, is now important enough to have its own five-year plan, issued in September.


(Editing by Neil Fullick)


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7 Apps for Creepers






1. Sneakypix


Ever been waiting on the train platform, minding your business, only to glance to your left and find yourself face-to-face with a grown-up nose picker? In this day and age, our first inclination is to snap a discreet photo. Sneakypix makes it appear as if you’re on a phone call, but instead, aim your camera lens at the nasal aficionado and the app will fire off a series of stealth photos or video. Price: $ 0.99


Click here to view this gallery.






[More from Mashable: Mom Gives Son a Christmas iPhone — With Strings Attached]


Do you have a smartphone? Then chances are you’ve been a creeper.


Now don’t get all defensive, just yet. How many times have you snapped a photo of some hipster’s pink beard on the subway? How often do you send racy pictures to your husband during his business trips? How many times have you wondered whether your teenager was smoking pot on the Williamsburg Bridge or visiting his grandma in Queens?


[More from Mashable: 9 Apps to Fast-Track Your New Years’ Resolutions]


While we’re not advocating sinister, paranoid behavior (take a hike, stalkers), sometimes it’s helpful and downright fun to act like James Bond. And it turns out, you don’t need all the slick gadgets to do it.


These seven iPhone and Android apps will get you started, secret agent-style.


But seriously, for the love of Carl, don’t do anything illegal. Mmm-kay?


Image courtesy of iStockphoto, klosfoto


This story originally published on Mashable here.


Tech News Headlines – Yahoo! News





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Heartwarming moments defy chill at Rose Parade






PASADENA, Calif. (AP) — A couple who became husband and wife on the “Love Float,” a surprise reunion between a returning soldier and his little boy, and a grand marshal famed globally for her chimpanzee research were among the highlights of the 124th Rose Parade on Tuesday.


The parade’s spectacular 42 floral floats brightened an otherwise cloudy New Year’s morning and boosted the spirits of a chilled crowd estimated at some 700,000 spectators lining the 5-mile route.






“The only way that you’re going to experience the Rose Parade is to be here in person,” said Los Angeles resident Gineen Alcantara-Nakama, who camped out Monday night to save front row sidewalk spots.


“Growing up, I watched it on television, but it’s not the same — the smell, the atmosphere, smelling the flowers as they come down the street. And the energy. It’s like being with family all night long.”


Spectators rose to a standing ovation when Army Sgt. First Class Eric Pazz, who was riding on the Natural Balance Pet Foods float along with other service members, got off the float and walked over to his surprised wife Miriam and 4-year-old son Eric Jr., who came running out of the stands into the arms of his 32-year-old father.


Miriam Pazz had been told she had won a contest to attend the parade and did not know her husband, who is deployed in Afghanistan, would be there. A native of Clio, Mich., Pazz is a highly decorated soldier who has also served in Iraq. The family, who currently lives in Germany, climbed aboard the float for the rest of the route.


Cheers also went up for a Chesapeake, Va., couple who tied the knot aboard Farmers Insurance “Love Float.”


Gerald Sapienza and Nicole Angelillo were high school classmates who reconnected 10 years later and won the parade wedding over three other couples in a nationwide contest. They received a trip to Pasadena, a wedding gown, tuxedo, rings, marriage license fees, Rose Bowl game tickets and hair and makeup for the bride.


The parade’s theme this year was “Oh the Places You’ll Go!” named in honor of the Dr. Seuss book. It served as a fitting slogan for grand marshal British primatologist Jane Goodall, who has spent much of her life in Tanzania studying chimpanzees.


Goodall chose conservation as her message for the parade


“My dream for this New Year’s Day is for everyone to think of the places we can all go if we work together to make our world a better place,” said Goodall, 78.


“Every journey starts with a step and I am pleased to see the Tournament of Roses continue to take steps toward not only celebrating beauty and imagination, but also a cleaner environment.”


This year’s parade also saw the first-ever float entered by the Defense Department.


The $ 247,000 military float was a replica of the Korean War Veterans Memorial in Washington to commemorate the veterans from that conflict.


The float that scooped up the parade’s grand “Sweepstakes” prize for the most beautiful floral presentation and design was “Dreaming in Paradise” by fruit and vegetable producer Dole.


According to parade rules, every inch of the floats must be covered with flowers or plant material, most of it applied by volunteers in the last weeks of December.


Besides floats, the parade also featured 23 marching bands and 21 equestrian units from around the world.


Banda El Salvador, a 200-plus member marching band and folkloric dance troupe, played sassy Latin rhythms and paid homage to their Central American country by dressing in the national colors of blue and white and shouting “Arriba El Salvador!”


The Aguiluchos band from Puebla, Mexico, earned cheers for their fancy footwork and vaquero rope tricks. Colorful dancers from Costa Rica and South Korea were other crowd pleasers.


Die-hard parade fans staked out their spots overnight or in pre-dawn hours with folding chairs, hammocks and portable barbeque grills despite frosty temperatures.


Emergency personnel received a number of cold-weather exposure calls, police department spokeswoman Lisa Derderian told City News Service.


As of 8 a.m. Tuesday, police had made a total of 22 arrests along the parade route since 6 p.m. Monday, said police Lt. Rick Aversan. All but one arrest were for suspected public intoxication. The other was for suspected possession of burglary tools that could have been used to break into cars, police said.


Entertainment News Headlines – Yahoo! News





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“Fiscal cliff” crisis heads to resolution in Congress






WASHINGTON (Reuters) – A months-long battle over the U.S. “fiscal cliff” headed to a close on Tuesday as the House of Representatives moved toward final approval of a bipartisan deal meant to prevent Washington from pushing the world’s biggest economy into recession.


The Republican-controlled House was expected to back a tax hike on the top U.S. earners shortly before midnight on Tuesday, ending weeks of high-stakes budget brinkmanship that threatened to spook consumers and throw financial markets into turmoil.






Approval of the bill would be a victory for President Barack Obama, who campaigned for re-election last November on a promise to raise taxes on the wealthiest but faced stiff opposition from congressional Republicans.


Republicans had earlier considered adding hundreds of billions of dollars in spending cuts after the bill had already passed the Senate with strong bipartisan support. That would have triggered further partisan warfare and pushed the crisis well past a self-imposed January 1 deadline.


But party leaders abandoned the effort after determining they lacked the votes.


“We’ve gone as far as we can go and I think people are ready to bring it to a conclusion,” Republican Representative Jack Kingston of Georgia said. “We fought the fight.”


Rules Committee Chairman David Dreier, a Republican, predicted the House would back the Senate bill, which also postpones for two months $ 109 billion in spending cuts on military and domestic programs set for 2013.


The bill easily cleared a procedural hurdle by a bipartisan vote of 408 to 10.


Lawmakers have struggled to find a way to head off across-the-board tax hikes and spending cuts that began to take effect at midnight, a legacy of earlier failed budget deals that is known as the fiscal cliff.


Strictly speaking, the United States went over the cliff in the first minutes of the New Year because Congress failed to produce legislation to halt $ 600 billion of tax hikes and spending cuts scheduled for this year.


TAX HIKES FOR WEALTHIEST


While many Republicans were uneasy with the tax hikes and wanted more spending cuts in the bill, they seemed to realize that the fiscal cliff would begin to damage the economy once financial markets and federal government offices returned to work on Wednesday. Opinion polls show the public would blame Republicans if a deal were to fall apart.


House Republicans had earlier considered adding $ 330 billion in spending cuts over 10 years to the Senate bill, which raises taxes on the wealthiest U.S. households by $ 620 billion over the same period.


But Senate Democrats refused to consider any changes to their bill, which passed 89 to 8 in a rare display of unity early Tuesday.


That measure, which passed the Senate at around 2 a.m., would raise income taxes on families earning more than $ 450,000 per year and limit the amount of deductions they can take to lower their tax bill.


Low temporary rates that have been in place for the past decade would be made permanent for less-affluent taxpayers, along with a range of targeted tax breaks put in place to fight the 2009 economic downturn.


However, workers would see up to $ 2,000 more taken out of their paychecks annually with the expiration of a temporary payroll tax cut.


The non-partisan Congressional Budget Office said the Senate bill would increase budget deficits by nearly $ 4 trillion over the coming 10 years, compared to the budget savings that would occur if the extreme measures of the cliff were to kick in.


But the bill would actually save $ 650 billion during that time period when measured against the tax and spending policies that were in effect on Monday, according to the Committee for a Responsible Federal Budget, an independent group that has pushed for more aggressive deficit savings.


(Additional reporting by Rachelle Younglai, Thomas Ferraro and David Lawder; Writing by Andy Sullivan; Editing by Alistair Bell and Eric Beech)


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Obama praises ‘fiscal cliff’ deal









Barack Obama: “The deficit is still too high”



Barack Obama has hailed a deal reached to stave off a “fiscal cliff” of drastic taxation and spending measures as “just one step in the broader effort to strengthen the economy”.


The US president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.


It raises taxes for the wealthy and delays spending cuts for two months.


There had been intense pressure for the vote to be passed before financial markets reopened on Wednesday.


In Tuesday night’s house vote, 172 Democrats and 85 Republicans voted in favour of the bill.


It had been passed in the Senate less than 24 hours earlier by 89 votes to eight after lengthy talks between Vice-President Joe Biden and Senate Republicans.


Economists’ warnings


Continue reading the main story

At the scene




In the end, it was settled after a tense meeting of House Republicans in a basement conference room.


When a stony-faced Speaker John Boehner left the room an hour later, one Congressman was overheard telling someone on the phone it was “looking like a long night”. Out of the basement, the smell of pizza wafted through the ornate House corridors. If the fiscal cliff was going to hurt ordinary Americans, the threat of it did no harm to one pizza parlour just a short hop down Pennsylvania Avenue.


Before the final vote, dissenters and supporters lined up to make their point. “Common sense has prevailed,” one Democrat declared; a prominent Republican said he simply did not believe spending cuts would eventually be delivered. But as the votes rolled in, House members stood on the floor and watched as the scoreboard lit up, and applauded – briefly – when the crucial 217th vote was cast.



Speaking before returning to Hawaii for his interrupted Christmas holiday, Mr Obama said that in signing the law he was fulfilling a campaign pledge.


“I will sign a law that raises taxes on the wealthiest 2% of Americans… while preventing a middle-class tax hike,” he told a White House press conference.


The US deficit was still too high, he said: While open to compromise on budgetary issues, he would not offer Congress spending cuts in return for lifting the government’s borrowing limit, known as the debt ceiling.


“There is a path forward, if we focus not on politics, but on what’s right for the country,” added Mr Obama.


The “fiscal cliff” measures – cutting spending and increasing taxes dramatically – came into effect automatically at midnight on Monday when George W Bush-era tax cuts expired.


The 1 January deadline triggered tax increases of about $ 536bn and spending cuts of $ 109bn from domestic and military programmes.


Continue reading the main story

What is the fiscal cliff?


  • On 1 January 2013, tax rises and huge spending cuts come into force – the so-called fiscal cliff

  • The deadline was put in place in 2011 to force the president and Congress to reach agreement on the budget over the next 10 years

  • Date coincides with expiry of Bush-era tax cuts

  • There are fears that raising taxes while massively cutting spending will have a huge impact on households and businesses

  • The fiscal squeeze could also push the US into recession, and have a global impact


Economists had warned that if the full effects of the fiscal cliff were allowed to take hold, the resulting reduction in consumer spending could have sparked a new recession.


The compromise deal extends the tax cuts for Americans earning under $ 400,000 (£246,000) – up from the $ 250,000 level Democrats had originally sought.


In addition to the income tax rates and spending cuts, the package includes:


  • Rises in inheritance taxes from 35% to 40% after the first $ 5m for an individual and $ 10m for a couple

  • Rises in capital taxes – affecting some investment income – of up to 20%, but less than the 39.6% that would prevail without a deal

  • One-year extension for unemployment benefits, affecting two million people

  • Five-year extension for tax credits that help poorer and middle-class families

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Pope marks end of difficult year, notes God’s good






VATICAN CITY (AP) — Pope Benedict XVI marked the end of a difficult year Monday by saying that despite all the death and injustice in the world, goodness prevails.


Benedict celebrated New Year’s Eve with a vespers service in St. Peter’s Basilica to give thanks for 2012 and look ahead to 2013. He appeared tired during the service and used a cane afterward — an indication that the busy Christmas season may be taking a toll on the 85-year-old Benedict.






In his homily, Benedict said it’s tough to remember that goodness prevails when bad news — death, violence and injustice — “makes more noise than good.” He said taking time to meditate in prolonged reflection and prayer can help “find healing from the inevitable wounds of daily life.”


This past year was full of highs and lows for the pope, including a successful trip to Mexico and Cuba but also the betrayal of his butler, convicted in October of stealing Benedict’s personal papers and leaking them to a journalist.


After the service, Benedict was brought out in a covered car to pray before the Vatican’s main nativity scene in St. Peter’s Square. Walking with a cane in the chilly piazza, Benedict chatted animatedly with the artist who crafted the scene, which recreated an entire village from the poor, southern Italian region of Basilicata which donated this year’s crèche.


The Vatican gladly accepted Basilicata’s donation after the €550,000 price tag the Vatican paid for the 2009 nativity scene was revealed in the documentation leaked by Benedict’s ex-butler Paolo Gabriele.


Gabriele was convicted of aggravated theft by a Vatican tribunal and sentenced to 18 months in prison. He received a pre-Christmas papal pardon and is expected to soon leave his Vatican City apartment for a new home and job elsewhere.


On Tuesday morning, Benedict celebrates a New Year’s Day Mass, which the Catholic Church celebrates as its world day of peace.


Europe News Headlines – Yahoo! News





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This Is 2012 Summed Up in One Image






Hey girl — it’s been a good year. No need to panic if you missed something along the way, though. Just look at the picture above.


[More from Mashable: 20 WTF New Year’s Resolutions]






Reddit user SellingIsSoExciting mashed together some of 2012′s biggest Internet moments into one masterfully crafted photo. It’s a grumpy, Gangnam-styling, Path to Prosperity-pumping collection of awesomeness.


[More from Mashable: Dying Trekkie Gets Private ‘Into Darkness’ Screening]


Any 2012 moments that should have made the photo? Let us know what you think below. And here’s to a meme-tastic and eventful 2013! Because, you know, YOLO.


BONUS: Top 12 Memes of 2012


12. Photobombing Stingray


Five years ago, three college girls on a Caribbean vacation got a serious case of the heebeejeebies when a stingray photobombed their “say cheese” moment. The hilarious photograph could have ended up as just a fond vacay memory if it weren’t for a friend, who shared the image on Reddit in September of this year.


Click here to view this gallery.


Image courtesy of Reddit, SellingIsSoExciting


This story originally published on Mashable here.


Tech News Headlines – Yahoo! News





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Hollywood tops Chinese film market in 2012, first time in four years






SHANGHAI (Reuters) – China‘s 2012 box office was dominated by foreign films for the first time in four years as a deal cemented earlier this year saw more Hollywood film screened on the mainland, squeezing out domestic competition.


China’s box office receipts are expected to reach 16.8 billion yuan ($ 2.7 billion) in 2012 and about 8 billion yuan ($ 1.28 billion), or slightly less than half the receipts, are from domestic films, the official People’s Daily reported on Monday, quoting estimates from the State Administration of Radio, Film and Television.






It is the first time in four years that domestic film receipts totaled less than 50 percent of the market and signals that the February trade agreement to allow more Hollywood movies to be screened in China is having a significant impact on the country’s movie industry.


Last year, domestic films made up 54 percent of box office receipts, down slightly from 56 percent in 2010, local media reported. China agreed in February to open its market to more American movies, permitting 14 premium format films such as IMAX or 3D to be exempt from the annual 20 foreign film quota.


Last month, Tian Jin, China’s vice minister of the State Administration of Radio, Film and Television, said the U.S. film industry was reaping massive profits due to the February concession while domestic producers were under pressure.


However, the best-selling film this year is a low-budget, domestically-produced comedy called “Lost in Thailand” about two rival businessmen. The movie drew a bigger audience in China than James Cameron’s “Avatar”, the People’s Daily said.


($ 1 = 6.2335 Chinese yuan)


(Reporting by Melanie Lee; Editing by Matt Driskill)


Movies News Headlines – Yahoo! News





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Illinois Sen. Kirk to return a year after stroke






CHICAGO (AP) — Nearly a year after a stroke left him barely able to move the left side of his body, U.S. Sen. Mark Kirk is expected to climb the 45 steps to the Senate‘s front door this week — a walk that’s significant not just for Illinois‘ junior senator, but also for medical researchers and hundreds of thousands of stroke patients.


It’s estimated only one-third of patients return to work after a stroke, said Dr. Elliot Roth, medical director of the Rehabilitation Institute of Chicago‘s New Patient Recovery Unit and AbilityLab, where Kirk recovered.






The 53-year-old Republican will return to the high-profile, demanding life of a Washington lawmaker after an experimental rehabilitation so intense it’s often compared to boot camp, Roth said. Patients keep grueling schedules, often spending eight hours a day or more re-learning how to walk, talk and do other tasks.


Because there are risks to going back to work unprepared, patients do “practice runs” of what it will be like to be back on the job. If and when they successfully return to work, Roth added, “It’s like having a great symphony play and recognizing it’s all the practice beforehand that went into it.”


Kirk will walk back into a Congress that has grappled for weeks over how to avoid going over the “fiscal cliff,” a series of across-the-board tax increases and spending cuts due to take effect Tuesday. President Barack Obama indicated Monday afternoon that a deal was in sight, but not yet finalized. But House Republicans said they will not vote on the issue Monday night, and it remained unclear whether the Senate would vote Monday.


The Illinois senator’s return will be inspiring to fellow stroke patients, said Frank Watson, the former Republican leader of the Illinois Senate who resigned from office after his 2008 stroke.


“For us in the stroke fraternity, we’re very happy to see this occur, to see somebody taking their life back,” Watson said. “There are so many people who don’t make it back.”


Kirk, who won President Barack Obama’s former Senate seat in 2010, checked himself into a hospital in January 2012 after feeling dizzy. Tests revealed that the avid swimmer had suffered a major stroke. Surgeons had to remove two small pieces of destroyed brain tissue, and temporarily removed a 4-inch by 8-inch portion of his skull to allow for swelling.


Doctors said movement in Kirk’s left side was severely limited. He was in intensive care and would need speech therapy, but they expected he would make a full mental recovery.


Within days, they said Kirk was asking for his Blackberry. In May, Kirk released a video updating his progress and showing footage of him walking with the help of a harness, a cane and Rehabilitation Institute of Chicago staff. It also included clips of Kirk speaking while sitting in a chair, his left shoulder lower than his right and the left side of his face still largely paralyzed.


Kirk said in the video that his staff had counted the steps from the parking lot to the front door of the Senate. It was his hope to climb all 45 of them someday, “to fight for the people of Illinois.”


In a separate video released three months later, Kirk was shown climbing stairs at the RIC and working in his home office. He said he had moved back to his home in the north Chicago suburbs, and that he was talking to his staff several times a day and keeping up with business in Washington via email. He also touted the experimental therapy, through which he had logged almost 15 miles and 145 flights of stairs.


Roth said the study represents a new approach to stroke rehabilitation, which has traditionally been slower and more cautious. In the study, one group — which included Kirk — was pushed harder and walked more, in an effort to see if it led to a quicker recovery.


In November, Kirk climbed 37 floors of stairs inside Chicago’s Willis Tower as part of an RIC fundraiser. One of his therapists called it “remarkable progress.”


Kirk has said little to the media throughout his rehabilitation. Through his staff, he declined to comment about his return to Washington. They have said he’ll walk the steps Jan. 3, when the new Congress convenes.


Watson, who was in a wheelchair for months after his stroke, said it will be important for Kirk to take it slow and make time for continued rehabilitation, noting “it’s not over.”


Watson’s stroke affected his emotions, prompting him to break down in tears at times he previously would not have. It’s something that still happens a little, he said.


Moments later, talking about the significance of Kirk’s return, Watson began to cry.


“We need success stories,” he said, “and Mark’s one of them.”


Health News Headlines – Yahoo! News





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China’s Futile War on Web Pseudonyms






Chinese Internet cops are at it again. On Dec. 28, the Standing Committee of the National People’s Congress came out with new regulations forbidding Chinese citizens from using pseudonyms when signing up for Internet service.


The official Xinhua news agency quickly tried to reassure everyone not to worry about any chilling effect on Chinese cyberspace. “Instead of depriving netizens’ freedom and entitlement, the rules protect the legal rights of every Internet user,” Xinhua reported in a commentary helpfully titled “Nothing to fear from new Internet ID policy.” The new rules, Xinhua added, “will ultimately help to create a better online environment in China.”






Given China’s record of censoring blogs, banning YouTube (GOOG) and Facebook (FB), and blocking foreign news sites, not everyone is convinced of the government’s good intentions, of course. “Anti-corruption campaigns online have deeply tarnished the party and the government’s image, and social media discussions have increased instability in certain regions,” Zhang Zhi’an, an adjunct professor at Sun Yat-sen University in Guangzhou, told Bloomberg News. “Enforcing real-name registration will make Web users more cautious when posting comments online.”


It’s far from certain, however, that the Chinese government will be able to succeed in this latest attempt at controlling the Net. To understand why, I spoke today to Mark Natkin, the managing director and founder of Marbridge Consulting, a research firm in Beijing. Natkin says this isn’t the first time Chinese authorities have tried to force Internet users to register using their real names. He’s seen at least three of these campaigns. Indeed, the Xinhua commentary points out that the country’s three telecom operators have required real-name registration since September 2010.


Natkin is waiting to hear specifics about the new requirement before assuming the worst. “How do you enforce it? What are the penalties?” he asks. “If there are no answers to that, there is really no change.”


Earlier moves by authorities to document all of China’s Internet users have had limited impact. For instance, anybody who wants to sign up for fixed-line broadband access has to show ID. Likewise, somebody who goes to a China Mobile store for mobile Internet access has to show papers before getting a new SIM card.


There are lots of other ways to get online in China, though. People can buy SIM cards from the supermarket or from the local newsstand, Natkin says. Even before the government came out with the new rules, those vendors were supposed to be carding would-be Internet customers. Few do, says Natkin. And good luck forcing them to do it now, since these small vendors often don’t have the network infrastructure to verify ID cards and ensure that they’re genuine.


Changing that equation won’t be easy, given how thin the vendors’ margins are. “The amount of money a kiosk can make on a new SIM card or a recharge is small enough—are they now going to go to the extra hassle of checking your ID card, writing down your name, and sending it to the authorities?” he says. “Managing that whole process for an ocean of little kiosks and supermarkets is so enormous a task.”


The government could prevent such vendors from selling SIM cards, but that would cut out an important source of revenue for the country’s three cellular operators, China Mobile (CHL), China Unicom (CHU), and China Telecom (CHA)—all of them owned by the state. Ending sales via kiosks and supermarkets would “be potentially huge hit to the operators,” says Natkin.


Businessweek.com — Top News





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