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Units that provide the information shall establish a security system for information examination and approval in accordance with certain work procedures.

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According to Article 17 of the Regulations, Public Security is entitled to "supervise, inspect and guide the security protection work," "investigate and prosecute illegal criminal cases" and "perform other supervising duties." In February 1996, the State Council issued rules on the connection between China's domestic network and the international Internet.

Units providing international inward and outward channels and interactive and interfacing units shall establish a network management center to strengthen the management of their own units and their consumers according to the relevant laws and state regulation, to improve network information security management, and to provide good and safe services to consumers.[U]nits and individuals engaging in Internet business shall strictly enforce safety and security control systems according to relevant state laws and administrative regulations, and shall not make use of the Internet to conduct criminal activities - including activities prejudicial to state security and the leakage of state secrets - or to produce, retrieve, duplicate, and disseminate information prejudicial to public order or pornographic materials." Public Security then issued a decree that all Internet users register with a police bureau in their neighborhood within thirty days of signing up with an ISP.

As the Internet industry continues to expand in China, the government continues to tighten controls on on-line expression.

As recently as July 11, 2001, President Jiang Zemin condemned the spread of "pernicious information" on the Net and called existing legislation "inadequate." Since 1995, when Chinese authorities began permitting commercial Internet accounts, at least sixty sets of regulations have been issued aimed at controlling Internet content.

This includes providing to the Public Security organization information, materials and digital document, and assisting the Public Security organization to discover and properly handle incidents involving law violations and criminal activities related to computer information networks.

The main two sets of regulations that foreign investors such as AOL will have to confront are the "Telecommunications Regulations Of The People's Republic Of China" and the "Measures For Managing The Internet Information Services," both issued by the State Council and effective from September 25, 2000.

Inciting to overthrow the government or the socialist system; 3.

Inciting division of the country, harming national unification; 4.

By July 2001 these access providers accommodated some 620 Internet Service Providers (ISPs) who served in turn some 1,600 Internet Content Providers (ICPs) and an estimated 26,000,000 users by the government's own conservative estimates.

RULES AND REGULATIONS Between 1994 and the present, China's rules and regulations on the Internet became progressively more comprehensive, moving from efforts to regulate Internet business to restrictions on news sites and chat rooms.

Article 16 then goes on saying that if material under these categories is discovered, "it shall immediately stop the transmission, keep the relevant records, and report the situation to the relevant state authorities."Other regulations that content providers have to face include the "State Secrets Protection Regulations For Computer Information Systems On The Internet" issued by the Bureau for the Protection of State Secrets (State Secrets Bureau) on January 25, but applied retroactively from January 1, 2000.

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