In a previous post, "Big Brother Vs Big Porn," I describe how China and Britain are attempting to regulate the porn industry. I suggest that the task will be difficult, posing Stigler's question, "What can regulators regulate?"
A Yahoo News Canada article (HT Drudge) titled, "Internet portals targeted by Chinese crackdown apologise," describes a no-holds-barred smackdown by the Chinese government,
Google and other major Internet sites apologised on Wednesday after the Chinese government accused them of failing to police links on their web pages that could lead to pornographic material. Google said it had deleted all links to vulgar material from its search indexes, "which may have had a negative effect on web users", in an apology posted in the company blog on its Chinese site...Baidu and other targeted sites posted similarly worded apologies.
Not having technical expertise, I do not know if this means the Chinese government has won the war, but it must have won an important battle, mustn't it?
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