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Who says there's no such thing as karma? A couple of years ago, Yahoo and its cofounder Jerry Yang did the Chinese government a big favor. Something about putting mouthy writers in jail. And now, the New York Times reports, a law that goes into effect this August will make the Chinese government Yang's best hope for fending off Microsoft CEO Steve Ballmer.

The law will make China the "third sphere of regulatory influence, matching the power of the European Union and the United States," the Times reports. That means Beijing can block anticompetitive mergers if they involve Chinese companies or investments in China. Even more conveniently, Beijing can consider national security issues in its review. And if China were to block a Microsoft-Yahoo merger and blame it on national security concerns? Well, let's just say it wouldn't be the first time such an arrangement worked out in Yang's favor. His mother, who fled Communist China for Taiwan, where Yang was born, must be so proud. (Photo by ford)