I think things are going to get tougher for Yahoo! in their Chinese troubles before they get any easier. I remain torn on whether American businesses should do business with nations that don't recognize individual rights (my natural inclination as an Objectivist is to say that they should not), but this quote is unsupportable:
Yahoo! has always said its Chinese subsidiary was only obeying local laws.
Such a stance can be taken to support any action, no matter how evil. It could have been used to justify a company's direct support of and business with the Nazis. After all, the Holocaust was simply the result of local German laws.