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This One From Forbes is short on any decent details, but quotes Yahoo co-founder Jerry Yang as saying 'We have to think of a way in which the internet phenomenon can continue to grow and reach more users and at the same time comply with local laws.' Yahoo came under fire last year for supplying information to the Chinese government which led to the arrest of Chinese journalist Shi Tao.
Shi was sentenced to 10 years in prison for passing on a government censorship order through his Yahoo email account.