Idealism or Isolationism?

Notwithstanding my previous rants about the evils of firms' choosing to comply with onerous laws such as China's censorship laws, this disturbs me significantly more:

Nearly every U.S. company with a Web site located in China will have to move it elsewhere or its executives would face prison terms of up to a year, according to proposed legislation expected to be introduced this week in the U.S. Congress.

It may be my cynical nature, but doesn't this sound like it's intended more to prevent firms from doing business in the country the US sees as its biggest competitor than to combat censorship?

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Actually, this law will

Actually, this law will probably have no actual effect. Google, for example, technically doesn't own any servers in China. A Chinese corporation, Google China, does. Now Google China happens to be a wholly owned subsidiary of Google, but it is an independent corporation from a legal standpoint.

This is pretty much standard practice, as it protects the main corporation from liability if one of their foreign subsidiaries ends up getting in trouble. It also means that this law is pretty much grandstanding.