{"id":3475,"date":"2021-10-20T20:01:38","date_gmt":"2021-10-20T14:31:38","guid":{"rendered":"https:\/\/xiarch.com\/blog\/?p=3475"},"modified":"2021-10-20T20:01:40","modified_gmt":"2021-10-20T14:31:40","slug":"chinas-vpn-market-now-launch-for-external-investment","status":"publish","type":"post","link":"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/","title":{"rendered":"China\u2019s VPN Market Now Launch for External Investment"},"content":{"rendered":"\n<p><p style=\"text-align: justify;\">The Central government of China in Beijing has revealed a decision to permit external entities to invest in the ownership of VPN (Virtual Private Network) services in the country.<\/p><\/p>\n\n\n\n<p><p style=\"text-align: justify;\">Under this new policy, foreign investors can only own up to 50% of China-based VPN companies. This permits China to recognize state control over local and approved products while still offering a significant incentive for investment.<\/p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rewards and Punishments<\/strong><\/h2>\n\n\n\n<p><p style=\"text-align: justify;\">Apart from VPNs, the policy update also includes changes in the investment caps on information services for app stores, internet connection services, and more. This comes as somewhat of a surprise for a country that has been fighting foreign VPNs for years now, hindering their presence in China and imposing fines and other penalties to users who ignored the banning orders.<\/p><\/p>\n\n\n\n<p><p style=\"text-align: justify;\">The case against VPNs was that they enabled users to override the so-called \u201cGreat Firewall\u201d and access overseas sites that should be otherwise out of reach due to government censorship. Although the relaxations are bound to bring foreign investments that will result in the changing of administrative dynamics and possibly also policy changes, China is not abandoning tight control over internet access.<\/p><\/p>\n\n\n\n<p><p style=\"text-align: justify;\">On the contrary, the state is still applying pressure to foreign companies to comply with:<\/p><\/p>\n\n\n\n<ul><li>Internet censorship requirements,<\/li><li>Maintain local servers where user data is stored and made available for the local authorities to access,<\/li><li>Block and report users who appear to be using censorship bypassing tools<\/li><\/ul>\n\n\n\n<p><p style=\"text-align: justify;\">The most advanced entity that determined to stop running in China due to these severe requirements is LinkedIn, Microsoft\u2019s employment-oriented social media platform. What China wishes to achieve through this policy amendment is to boost its various service industries.<\/p><\/p>\n\n\n\n<p><p style=\"text-align: justify;\">The eight directives published by the State Council affect the following sectors:<\/p><\/p>\n\n\n\n<ul><li>Educational institutes<\/li><li>Telecommunication enterprises<\/li><li>Commercial performances<\/li><li>Quality management in construction projects<\/li><li>Survey and design of construction projects<\/li><li>Travel agencies (Taiwan is excluded from the list of destinations)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Launching up the Search Space<\/strong><\/h2>\n\n\n\n<p><p style=\"text-align: justify;\">At the same time, the Chinese government is thinking of breaking the \u201cwalled gardens\u201d of its tech giants, especially Alibaba and Tencent, by opening up the search engine space on the Chinese internet.<\/p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"696\" height=\"349\" src=\"https:\/\/xiarch.com\/blog\/wp-content\/uploads\/2021\/10\/Chinas-VPN-Market-Now-Launch-for-External-Investment-image1-1.jpg\" alt=\"Chinas-VPN-Market-Now-Launch-for-External-Investment-image1\" class=\"wp-image-3480\" srcset=\"https:\/\/xiarch.com\/blog\/wp-content\/uploads\/2021\/10\/Chinas-VPN-Market-Now-Launch-for-External-Investment-image1-1.jpg 696w, https:\/\/xiarch.com\/blog\/wp-content\/uploads\/2021\/10\/Chinas-VPN-Market-Now-Launch-for-External-Investment-image1-1-300x150.jpg 300w\" sizes=\"(max-width: 696px) 100vw, 696px\" \/><\/figure><\/div>\n\n\n\n<p><p style=\"text-align: justify;\">The Ministry of Industry and IT is currently drafting rules that would compel all Chinese internet firms to accept to display the content of rivals on their search results. For instance, ByteDance and Tencent would have to display TikTok and WeChat content inside one another\u2019s search results, and standalone search engines like Baidu\u2019s would have to include them all and treat them equally in their results too.<\/p><\/p>\n\n\n\n<p><p style=\"text-align: justify;\">If the ministry proceeds with these regulations, it would be an unprecedented opening-up move for the Chinese internet, and one that would make dominating it a lot harder than it was in the past decade.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central government of China in Beijing has revealed a decision to permit external entities to invest in the ownership of VPN (Virtual Private Network) services in the country. Under this new policy, foreign investors can only own up to 50% of China-based VPN companies. This permits China to recognize state control over local and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.11 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China\u2019s VPN Market Now Launch for External Investment - Xiarch Solutions Private Limited<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s VPN Market Now Launch for External Investment - Xiarch Solutions Private Limited\" \/>\n<meta property=\"og:description\" content=\"The Central government of China in Beijing has revealed a decision to permit external entities to invest in the ownership of VPN (Virtual Private Network) services in the country. 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This permits China to recognize state control over local and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"Xiarch Solutions Private Limited\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/xiarch\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-20T14:31:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-20T14:31:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/xiarch.com\/blog\/wp-content\/uploads\/2021\/10\/Chinas-VPN-Market-Now-Launch-for-External-Investment-featured-image-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"525\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Xiarch Security\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xiarch\" \/>\n<meta name=\"twitter:site\" content=\"@xiarch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Xiarch Security\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\"},\"author\":{\"name\":\"Xiarch Security\",\"@id\":\"https:\/\/xiarch.com\/blog\/#\/schema\/person\/655d814a04eacce56942270cfdc5c59c\"},\"headline\":\"China\u2019s VPN Market Now Launch for External Investment\",\"datePublished\":\"2021-10-20T14:31:38+00:00\",\"dateModified\":\"2021-10-20T14:31:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\"},\"wordCount\":467,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/xiarch.com\/blog\/#organization\"},\"articleSection\":[\"Infosec News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\",\"url\":\"https:\/\/xiarch.com\/blog\/chinas-vpn-market-now-launch-for-external-investment\/\",\"name\":\"China\u2019s VPN Market Now Launch for External Investment - 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