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The Chinese have figured out that they have a giant environmental problem. Folks in Beijing, some days, literally can't breathe. Over a million Chinese die prematurely every year because of air pollution.

All enterprises and major players need to pay attention to the needs of the government of the country of which they are a part. At one level, it would be unconscionable for a company like Huawei not to be responsive to Chinese national-security needs.

If high-tech companies are serious about doing the right thing, they can join together and lobby for more transparency and accountability in the way in which Chinese officialdom deals with Internet services.

I didn't say Facebook could not enter China, but nor did I say that it could.

So rather than face the bitter truth, China has placed severe restrictions on the Internet and enlisted America's high-tech companies as their Internet police.

Many Chinese companies are run like military camps with military discipline. We do not run a company that way. It does not help the creative process.

China has always been very hospitable, but we can choose who enters our house. We could not allow any companies to enter China and make money while hurting the country.

We should forcefully call out China whenever it violates international standards.

The Chinese government still would like to see U.S. Internet companies explore the Chinese market, providing they are willing to abide by Chinese law. I think companies like Facebook should think about the Chinese market.

So China will be having to make some choices as to whose side it wants to be on. Hopefully, this will be the beginning of a major improvement in our relationship with them, if they choose correctly.