Beijing: Go Daddy Group, the world's largest registrar of domain names, has joined rival Network Solutions in refusing to offer new domain names in China because of what Go Daddy describes as increased internet spying by the government on its citizens.

Christine Jones, executive vice-president and general counsel of Scottsdale, Arizona-based Go Daddy, disclosed the company's change in policy at a hearing of a congressionally mandated commission today in Washington.

The decision was prompted by a "recent increase in China's surveillance and monitoring of the internet activities of its citizens", Jones told the Congressional-Executive Commission on China.

Herndon, Virginia-based Network Solutions, which was acquired by General Atlantic in 2007, stopped offering China domain names in December because of the government's requirements for "a lot of other personal information," Susan Wade, a company spokesman, said.

Go Daddy's announcement comes two days after Google said it would no longer censor internet search results in China.

Mountain View, California-based Google, the world's largest search engine, said two days ago it would redirect Chinese readers to its unfiltered Hong Kong website.

First to follow

"Go Daddy is the first company to follow Google's example," Representative Christopher Smith, a New Jersey Republican, said.

Go Daddy's decision is "a powerful sign that American" information technology "companies want to do the right thing in repressive countries."

Jones told the commission that the China Internet Network Information Centre, a quasi-governmental agency that oversees registration services, has begun requiring more stringent identification and documentation for those seeking domain names.

In addition, the agency said it would audit all China domain name registrations already held by Chinese nationals, Jones said.

"We are concerned for the security of the individuals affected by" the agency's new rules, she said.

Go Daddy and other domain registrars also were asked to provide to the agency photo and business identification, as well as signed registration forms from Chinese domain registrants, Jones said.

At the same hearing, Alan Davidson, director of public policy at Mountain View, California-based Google, pressed for the US and other governments to consider new trade rules for countries that censor the internet.

These censorship policies often favour local businesses, he said.

"We should continue to look for effective ways to address unfair foreign trade barriers in the online world," Davidson said.

Tying aid

The US also should think about tying foreign aid to countries adapting better internet policies, he said.

In a statement provided to the commission, the Chinese Internet Bureau of the Information Office of the State Council criticised Google's decision to stop censoring the internet and not work with the government.

"The Chinese government encourages the development and popularisation of the internet and is committed to opening up the internet," the statement said.

China has 384 million internet users, according to government data, more than the total US population.