From CNET News:
Yahoo and the other top U.S.-based search engines have come under fire for their practice of cooperating with the Chinese government in censoring information online. Yahoo has been accused of providing evidence to Chinese authorities that led to the imprisonment of two Chinese Internet users, including a journalist who was sentenced to 10 years in prison.
The arrests "are never things you go home and feel good about," Yang said. "We feel horrible about that...We have no way of preventing that beforehand....If you want to do business there you have to comply."
Later in the day, during a question-and-answer session at the JMP Securities Research Conference, he reiterated many of the same statements and added that Yahoo executives have raised the issue with the Chinese government. "We feel the government needs to work on it as a trade issue."
Internet companies have to deal with regulations that affect their business in other countries as well, even in the U.S., which has the Patriot Act, he said. "There is no 100 percent clean, no matter what country you're talking about."