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The chair of the Foreign Affairs Committee of the US House of Representatives had a few choice words for Yahoo after discovering company executives knew more than they let on about the arrest of Shi Tao, a Chinese journalist jailed for speaking against the state.

Yahoo helped the Chinese government prosecute Shi Tao by handing over email content and history, evidence that led to a 10-year prison sentence. Roundly criticized by free speech advocates and Reporters Without Borders, Yahoo executive Michael Callahan maintained – under oath in front of Congress – that Yahoo knew nothing of the nature of the investigation, and had to comply with Chinese law in order to do business there.

Recently discovered documents reveal that wasn't completely true. Yahoo was told by the Chinese government that they sought information on a specific Yahoo Mail user because the user had provided state secrets to foreign entities.

Just like unapproved Tibetan reincarnation is "illegal and invalid" without government approval, "providing state secrets" is a blanket charge for anyone who would speak out against them, designed more for manipulation than actual justice.

Representative Tom Lantos (D-CA), head of the Foreign Affairs Committee, is calling for an investigation.

"Covering up such a despicable practice when Congress seeks an explanation is a serious offence. For a firm engaged in the information industry, Yahoo sure has a lot of secrecy to answer for. We expect to learn the truth, and to hold the company to account."

A Yahoo spokesperson told ArsTechnica that Callahan's testimony was truthful, and that Yahoo has been "candid" about the challenges of doing business in China. And here's the best part:

"We believe deeply in human rights, and our senior executives have condemned punishment of any activity internationally recognized as free expression, whether in China or anywhere else in the world," said spokeperson Jim Cullinan.

Condemned it in words, but obviously they don't feel deeply enough to stop doing business there, or to resist Chinese requests for censorship and privacy violations, just like McDonald's, Pepsi, and Visa will continue to sponsor the 2008 Olympics in spite of the abuses, just like the US government will do little to control Chinese trade, when they have such control over the value of the dollar, just like Wal-Mart and Fisher Price will continue to sell dangerous made-in-China products because the margins are better.

After all, child slave labor is much cheaper than paying American adults.

Is globalization still a cure for all the evils in the world? Or is it just an excuse to make money without having to worry about a silly thing like conscience? What is the cost of that utopia?