Yahoo! had a choice. It chose to provide an e-mail service hosted on servers based inside China, making itself subject to Chinese legal jurisdiction. It didn't have to do that. It could have provided a service hosted offshore only.
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About Rebecca MacKinnon
Rebecca MacKinnon was American activist and journalist. Rebecca MacKinnon is an American author, researcher, and Internet freedom advocate, and the co-founder of the citizen media network Global Voices. She is notable as a former CNN journalist who headed the CNN bureaus in Beijing and later in Tokyo. Read more on Wikipedia →