http://money.cnn.com/2010/03/25/technology/go_daddy_china/index.htm?cnn=yes&hpt=Sbin "China recently implemented new laws requiring Go Daddy to collect color headshot photos, business ID numbers and signed registration forms from new registrants of ".cn" domain names. Go Daddy, in turn, was required to surrender that information to government authorities." "Jones said China's new rules also applied retroactively, so the company would have to go back to Chinese customers that had already registered, asking them to provide photos, business ID numbers and registration forms"
China is so messed up. The major backbones should just drop China and stop servicing them if they don't want to play nice with the rest of the world. I think the move would piss off enough of the Chinese public that the government would have to provide free unfiltered access to the Internet (To keep people serving the Internet to them), or explain to loads of people why they are now in the dark.
Sadly most western company's bow to whatever rule china makes up as the potentional market is too large to ignore or boycot.
The issue is, if one company does not, ten others will. It needs international law to pressure the Chinese government, but that probably won't happen.