Chinese people today have access to a plethora of information, and hundreds of thousands of Chinese share their opinions online on topics that were considered taboo only a few years ago. Yes, some sites are blocked. Yes, some topics better be avoided. And yes, self-censorship is routine. But any tech savvy teenager could teach you a dozen ways to access a blocked web site, and, with all due respect, a news report about elections in America/Palestinian Authority or even the latest shenanigans of Brad and Jennifer advances the cause of freedom and normality much more than a photo of the Dalai Lama or the online manifesto of the FaLunGong.
It is necessary to set ground rules for U.S. companies operating abroad, but as far as China is concerned, the imperative should be to allow access to as many people as possible. After that, when 400 million Chinese citizens are online, leave it to the market to bring down the walls.