Nope, she's describing the only reasonable way of operating under conditions you can't change.
So far as Chinese companies are concerned, the government has just standardized and formalized rules already in place. So far as foreign companies are concerned, they planned for this possibility and can now proceed accordingly. If there's any international company that doesn't have their Chinese infrastructure in a silo, their friends and loved ones should take away their keys RIGHT NOW because they're a danger for themselves.
This brings back memories -- back when they were making lots of money, RIM had a row with Indian government over the same issue. They did a little "we're outraged" dance and promptly forked over the keys -- they'd be idiots not to (and idiots with a lawsuit for breach of fiduciary duty on their hands).
This is also far better for the users, although a lot more work, than pulling out of the country entirely, as some companies have done in the past. The world is a complicated and hairy place, and you can either pretend otherwise or be a global company.
For instance, I suspect that it might be more than a coincidence that large telecom companies that have any presence in emerging markets tend not to have any presence in the US (someone had a bright idea to pass a law that gives US courts jurisdiction to punish companies with presence in the US for "engaging in corruption" abroad). I'd suspect everyone else goes out of their way to create a wide moat between the mother corp and their offspring (Nestle India comes to mind, which trades independently on NSE)
So far as Chinese companies are concerned, the government has just standardized and formalized rules already in place. So far as foreign companies are concerned, they planned for this possibility and can now proceed accordingly. If there's any international company that doesn't have their Chinese infrastructure in a silo, their friends and loved ones should take away their keys RIGHT NOW because they're a danger for themselves.
This brings back memories -- back when they were making lots of money, RIM had a row with Indian government over the same issue. They did a little "we're outraged" dance and promptly forked over the keys -- they'd be idiots not to (and idiots with a lawsuit for breach of fiduciary duty on their hands).
This is also far better for the users, although a lot more work, than pulling out of the country entirely, as some companies have done in the past. The world is a complicated and hairy place, and you can either pretend otherwise or be a global company.
For instance, I suspect that it might be more than a coincidence that large telecom companies that have any presence in emerging markets tend not to have any presence in the US (someone had a bright idea to pass a law that gives US courts jurisdiction to punish companies with presence in the US for "engaging in corruption" abroad). I'd suspect everyone else goes out of their way to create a wide moat between the mother corp and their offspring (Nestle India comes to mind, which trades independently on NSE)