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The internet in China is both censored by the government and used for surveillance, but American companies make the calculation that it is better to be there, albeit in a diminished capacity, than not at all. Nevermind, Chinese internet users are getting organized on the web and the result is real social change.
"American companies make the calculation..." Goes beyond that -- the very idea of firewalls, filters, tracking, and most other ways of technologically restricting or monitoring the Internet were peddled and still are from the Free World to the, er, less free (no offense, China!)!
China's governmental wants and needs are absolute market makers for Seimens, MSFT, Google, ATT -- and zillions of niche firms, many in Cali. And also a big thanks to Stanford, CalTech, MIT, the Fulbright Committee and the other institutions hived around China's best and brightest, some of whom are now experts in not expanding but killing free thought and discussion.
We can't blame the companies -- dollars are neither clean or dirty once spent again -- but I point this out to remind us that we cannot either rely on them to "do the right thing," or "do no evil" without making our own voices heard, via our representatives, our letters and/or our dollars.
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