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Three people have been arrested. Yahoo handed them over to the Chinese government. In the latest case, the fellow's emails were in DRAFT; Yahoo searched his draft emails and turned him over anyway. This is going beyond just complying with the local law.
Maybe a boycott of Yahoo PPC might get some attention at Yahoo.
Yahoo handed them over to the Chinese government
Since Yahoo is only complying with Chinese law, and it is actually the government of China that is demanding the data and then doing the arresting, why don't your clients boycott China (and products produced in China) instead?
I will pass along to my clients your suggestion that they boycott products made in China.
Since you approve of boycotting products, can I assume you'll support a boycott of Yahoo?
Companies that want to do business in China do not have the luxury of picking which laws/regulations/policies they will choose to honor. When you purchase products made in China, you should be aware that they are available only because other companies are exploiting the same people and complying with those same laws.
Flip the coin. If Yahoo had refused to hand over data to the Chinese government and thereby been banned from doing any business or transmitting any data in/out of China, would your clients be standing up to send "atta-boy" donations to Yahoo to replace their lost revenue?