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Reports that United States companies are striving to find a balance as political tensions between China and Taiwan, threatens to disrupt the flow of critical components. What breakdown in trade relations between the three could mean; Comments from Mike Campi, vice president of worldwide materials for Apple Computer Incorporated.

This section presents news briefs on issues and events related to the computer and Internet industry as of January 3, 2005. China's first network based on Internet Protocol Version 6 called CERNET2 (China Education and Research Network 2), begins operations, linking 25 universities in 20 cities across China at speeds as fast as 10 gigabyte per second, network officials say. On the other news, the latest version of the Santy worm poses an elevated risk to many Web sites built using the PHP scripting language, and protection of those sites may involve individually recoding them, security experts warn. Meanwhile, faced with intense competition from Dell, Hewlett-Packard, IBM, and others, blade server vendor RLX Technologies drops its hardware lineup to focus on developing and marketing its RLX Control Tower 6G blade server management software suite.

Discusses the impact of aggressive posturing of the US federal government against China over widespread Chinese software piracy and trade barriers on the efforts of the American computer industry to break into the Chinese market. Imposition of high tariffs; Views from industry officials; Analysts' views.