A while back, it was "just following orders." Now it's "just providing what the consumer wants." In this case, the consumer being the Chinese government and Internet services:
The former Yahoo! rep also admitted that the search phrase "Taiwan independence" on Chinese Yahoo! would yield no results, because Yahoo! has disabled searches for select keywords, such as "Falun Gong" and "China democracy." Search for VIP Reference, a major overseas Chinese dissident site, and you will get a single hit, a government site ripping it to shreds. How did Yahoo! come up with these policies? He replied, "It was a precautionary measure. The State Information Bureau was in charge of watching and making sure that we complied. The game is to make sure that they don't complain." By this logic, when Yahoo! rejected an attempt by Voice of America to buy ad space, they were just helping the Internet function smoothly. The former rep defended such censorship: "We are not a content creator, just a medium, a selective medium." But it is a critical medium. The Chinese government uses it to wage political campaigns against Taiwan, Tibet, and America. And of course the great promise of the Internet in China was supposed to be that it was unfettered, not selective. The Yahoo! rep again: "You adjust. The crackdowns come in waves; it's just the issue du jour. It's normal."
Theoretically, China's desire to be part of the Internet should have given the capitalists who wired it similar leverage. Instead, the leverage all seems to have remained with the government, as Western companies fell all over themselves bidding for its favor.
Here's the entire, depressing article from the Weekly Standard