Yahoo! is being accused of helping the Chinese government convict a journalist charged with stealing state secrets. Reporters without Borders first broke this story and it is now getting major coverage.
BBC News site gives a good summary as well as explores the implications of developing the market in China.
Obviously there are implications of trading in a restrictive country. Also Yahoo! does not guarantee absolute privacy. If the US government needed information about terrorism we would be up in arms if Yahoo! denied it. The access question is going to get some press... the issue however will not be resolved... but hopefully some people will learn that a multinational corporation needs to be aware of varying politics and not be swayed by any one set of rules.