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ICANN do negotiate terms with the gTLD registries. ICANN in the hands of the chinese could mean that terms of use for gTLD domains become more restrictive. Annoy a governement, and suddenly one could find that one's domain has been redelegated by the registry due to breach of some of the more obscure terms for registering the domain.
I'm European and don't particularily trust the Bush government, but ICANN under US control is a lot better than letting the chinese and the arabs and the africans start "influencing" the terms and conditions for gTLD domain ownership.
I propose that the US DoC give away part of their shares in ICANN to regional governments and entities which share democratic values with the US. Let the US own 40%, EU parliament 30%, Australia 10%, South Korea 10% and Japan 10%. That way the ownership of ICANN is better distributed geographically, and better distributed among the countries most avidly using the internet, and countries which we know don't like certain aspects of the internet aren't given any control whatsoever.
In order to please China, just give them the .china tld written in chinese script with IDN encoding, as well as a huge chunk of IPv6 address space.
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