China’s Ministry of Public Security (MPS) has just completed the first phase of the well-known "Golden Shield Project." The information technology project was initiated in 2001 and passed the test and the state’s inspection on November 11, 2006. The three milestone achievements of the first phase include 8 national-wide databanks and 60 applications systems, a communication network and computer information systems connecting over 800,000 computers, and a nation-wide PKI/MI system that has issued over 700,000 digital certificates and currently interfaces with 230 application systems
Chen Yonglin, a former Chinese consulate staff member stationed in Sydney, Australia, arrived in Toronto on June 4 and is currently touring Canada. During press conferences held in Toronto and the Ottawa Parliament, he revealed how the Communist regime controls overseas Chinese communities, infiltrates the media, and sets up traps for western politicians. 
A Beijing government think tank undertook a priority research project in 2004 and has published a three-part outline of its research entitled, "Research on New Characteristics and Circumstances of Western Hostile Forces Westernizing and Dividing China." The research paper states that the anti-China forces inside the Bush Administration are rising due to the unity between U.S. Defense Department and the blue team of extreme conservatives. The paper recommends that China continue to "engage and cooperate" with the United States for the sake of China’s economic development and technological advancement, but should "increase communications with Japan, Russia, France, Germany, Australia, Canada, India, Brazil," and neighboring countries. The paper suggests that China can use the United Nations as a means to "contain" the United States.
The Chinese Communist Party has kept the Falun Gong issue at the top of its agenda and accused the United States and other Western countries of supporting Faluln Gong for the purpose of political penetration and the peaceful transformation of China. The Communist Party acknowledges that there are a lot more Falun Gong practitioners in China than what the Chinese media have previously reported. The Communist Party has directed the Chinese media not to report this specific Party directive.
On June 11, Wang Xiaolu, the Vice Director of the National Economic Research Institute of the China Reform Foundation, released a report about "grey income," the income that is never officially reported. He found that the urban population has "4.4 trillion Yuan (0.55 trillion $US) of grey income that is not accounted for in China’s national statistics."
In November 2006, the propaganda department of a county Communist Party Committee affirmed that news reporting is a matter of politics. "Media is the mouthpiece of the Party." The Party should carefully guide public opinion by following "the principle of ‘enhancing positive publicity, blocking negative reports, and handling sensitive reports with caution." The directive calls for implementation of a mechanism of censorship so that "no person shall collect and publish news reports on problems and hot issues without the approval of the County Committee’s Propaganda Department." Topics banned from news reporting include disparity of income, lawsuits against the Party and the authorities, embezzlement and anything that will "bring instability to our society." News reporting of international events must be consistent with that of the central government. Violators will be publicly reprimanded.