By James T. Areddy 

WUZHEN, China-- Dean Garfield says he has made eight trips to China, but Wednesday marked the first time he was able to update his Facebook friends with his whereabouts.

"I wanted to send a message this morning, and I assumed it wouldn't work, " he said, in reference to China's infamous blocks on Internet social networks.

"But, it worked," said Mr. Garfield, who is chief executive at the Washington-based trade group Information Technology Industry Council.

In one town this week, Chinese censors have removed a stone from their "Great Firewall" of technological controls that typically make it impossible for the world's largest Internet user base to see major social networks taken for granted elsewhere. The occasion for the rare--if limited--concession is a high-powered forum called the World Internet Conference, which Chinese Internet regulators and executives are using as a platform to assert ascendancy of Internet service that is carefully filtered, highly advanced and hugely profitable.

China's top Internet regulator, Lu Wei, minister of the State Council's Cyberspace Administration of China, opened the three-day event on Wednesday in this ancient town of canals. He reiterated that Internet controls are a sovereign issue and that his government views the online arena as one that should be a "free and open place, with rules to follow."

Another policy maker, Ma Kai was more blunt: The Internet is "a two-edged sword," he said.

On everyone's lips around the 1,300-year-old town of stone bridges and wooden tea houses is the success of Alibaba Group Holding Ltd., the online retail bazaar based in nearby Hangzhou. With its $25 billion initial public offering of stock in September, Alibaba illustrated the value in China's more than 630 million Internet users.

In presentations, Chinese executives highlighted their plans for next-generation services to invest, hail taxis and, in one case, secure manicure appointments. A researcher for the aerospace industry, Quan Chunlai, described a "smart police" program now being tested in China that helps limit crimes by drawing on personal information such as bank-account data and car registrations.

"China has its own stories, and we have the opportunity to lead the world," a panelist said.

Delegates repeatedly cited a desire to ensure the Internet makes dreams come true. That is a reference to President Xi Jinping's guiding philosophy of a "China Dream," which he has stamped on Internet policy by elevating Web development to the core of China's "overall national security outlook" and by calling on the industry to generate "positive energy."

Human-rights groups say China is using the fresh policies to further stifle dissent.

Few Western governments sent top representatives to this week's congress, which some delegates said reflects concern their presence might be used as an endorsement of Chinese policy to highly control the Internet.

Igor Shchegolev, an aide to Russian President Vladimir Putin, said national governments should govern "everything where content is concerned," but he added that it is time for international agreement on norms in cyberspace.

Some of the Western Internet companies with executives at the conference, including LinkedIn Corp. and Facebook Inc., sidestepped censorship issues during their remarks.

LinkedIn co-founder Reid Hoffman said his company's challenge is finding the "right kind of cultural fit" in China and that the online social network is stationing executives in the country. He didn't elaborate. LinkedIn has been criticized by some users in China for blocking certain messages on the company's platform in ways that conform with Chinese policy.

Facebook Vice President Vaughan Smith spoke briefly in Mandarin before saying that a goal of the social-network company in China is to place advertising for its clients in the country. Mr. Smith's remarks echoed a recent speech in Chinese by Facebook co-founder Mark Zuckerberg .

Mr. Garfield, from the technology-industry association, challenged any notion that Chinese Internet companies dominate in the country because their global competitors haven't figured out the market. Mr. Garfield said those global rivals often aren't allowed into China. "That's not a cultural issue," he said. "That's a market-access issue."

Yang Jie contributed to this article.

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