I also read this by Michael Geist:
"While Icann's technical support was not needed for the Chinese IDN system, the internet governance community has provided China with the legal support to establish such a system. At the UN's World Summit on the Information Society in Tunis last year, governments confirmed the sovereignty of individual countries over their national domains. The Chinese domains are therefore a legitimate exercise of that sovereignty."
http://michaelgeist.ca/index.php?option=com_content&task=view&id=1145&Itemid=85
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