Page 114 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
from using VPNs. The clampdown would shutter one of Bloomberg reported in the same month that China’s
the main ways in which people both local and foreign government has told telecommunications carriers to
still manage to access the global, unfiltered web on a block individuals’ access to VPNs by Feb. 2018 (Yang,
daily basis. While VPNs are widely used by businesses Larson, and Ho). The Chinese MIIT has denied recent
and individuals to view banned websites, the technology reports claiming that it plans to prevent Internet users
operates in a legal gray area. It’s unclear how the new from accessing VPNs. MIIT claimed, “Our subordinate
directive may affect multinationals operating within the departments have not issued any relevant notices.” It
country. Companies operating on Chinese soil will be able added, without making specific reference to Bloomberg,
to employ leased lines to access the international web but “Recent overseas media reports are not true.” Currently,
must register their usage of such services for the record. multinational companies and foreign trade businesses
“This seems to impact individuals” most immediately, are allowed to use VPN services provided by approved
said Jake Parker, Beijing-based Vice President of the US- telecommunications operators (Tong). “Trade or
China Business Council. “VPNs are incredibly important multinational enterprises, if they require leased lines or
for companies trying to access global services outside of other methods to access the Internet abroad, can turn
China,” he said. “In the past, any effort to cut off internal to authorized telecommunications entities,” the ministry
corporate VPNs has been enough to make a company said in its brief statement. “The (January) notice will not
think about closing or reducing operations in China. It’s affect normal operations” (Chan). Even if Bloomberg’s
that big a deal,” he added (Yang, Larson, and Ho). sources were reliable, it wouldn’t be the first time
Chinese authorities have espoused such rhetoric. China
By July 2017, Apple removed all major VPN apps already blacklists the IP addresses and domains of known
from the App Store in China. The computer giant issued VPN servers outside the country at infrequent intervals.
a statement claiming it was “required” to remove the In the past, these actions have caused some VPNs like
apps because they violate Chinese law. The Chinese Astrill to be almost completely shut down for users on
government effectively illegalized VPNs when new the mainland. Most, however, only suffer temporary
rules issued in January 2017 required them to receive downtime until they’ve had a chance to update their
government approval in order to operate. Unlike Google, software and server addresses (Bischoff ).
Apple has been allowed to operate its own app store
within China. But to do so, it must abide by Chinese laws However, no denial was published concerning many
and regulations. That means when Chinese authorities other Western articles that appeared. Reuters reported
request for an app to be removed from the App Store, earlier in July 2017 that that the Great Firewall had
Apple must remove it if it wants to maintain a presence been “upgraded” with new capabilities. VPN services
in the country. subsequently found that they had been hit by the
most sophisticated attacks from China to date (Carsten,
ExpressVPN wrote on its blog, “We’re disappointed Rajagopalan, Wee). One of these upgrades seems to be
in this development, as it represents the most drastic against high-end hotels. Plush international hotel lobby
measure the Chinese government has taken to block the were one of the few places to find gaps in the Great Firewall
use of VPNs to date, and we are troubled to see Apple as they often offered brief free-internet with access to
aiding China’s censorship efforts. ExpressVPN strongly VPN services. Regulators have warned firms providing
condemns these measures, which threaten free speech Internet networks for hotels to stop offering, or helping
and civil liberties.” Going direct to Apple is becoming an to install VPNs into hotel systems. “We received notices
effective way to enforce censorship since the U.S. firm recently from relevant (government) departments, so we
controls what apps are available in China. The tactic don’t make recommendations anymore,”said a marketing
proved successful for China earlier in 2017 when Apple manager at Chinese hotel network provider AMTT Digital
removed the New York Times app from the Chinese App told Reuters. He added this was linked to increased
Store. The Times and Wall Street Journal are among a government scrutiny over the use of unauthorized VPNs
number of international news sites blocked in China. (Li, Cadell).
It’s unclear whether similar action has been taken with
Android stores in China. The Google Play Store is not In September 2017, a Jiangsu IT engineer has been
present in China, where a handful of third-party app detained for three days for selling VPN services as China
stores are the most influential distributors of Android cracked down on online cross-border operations without
apps (Russell). approval. Nanjing police detained the engineer for three
114
from using VPNs. The clampdown would shutter one of Bloomberg reported in the same month that China’s
the main ways in which people both local and foreign government has told telecommunications carriers to
still manage to access the global, unfiltered web on a block individuals’ access to VPNs by Feb. 2018 (Yang,
daily basis. While VPNs are widely used by businesses Larson, and Ho). The Chinese MIIT has denied recent
and individuals to view banned websites, the technology reports claiming that it plans to prevent Internet users
operates in a legal gray area. It’s unclear how the new from accessing VPNs. MIIT claimed, “Our subordinate
directive may affect multinationals operating within the departments have not issued any relevant notices.” It
country. Companies operating on Chinese soil will be able added, without making specific reference to Bloomberg,
to employ leased lines to access the international web but “Recent overseas media reports are not true.” Currently,
must register their usage of such services for the record. multinational companies and foreign trade businesses
“This seems to impact individuals” most immediately, are allowed to use VPN services provided by approved
said Jake Parker, Beijing-based Vice President of the US- telecommunications operators (Tong). “Trade or
China Business Council. “VPNs are incredibly important multinational enterprises, if they require leased lines or
for companies trying to access global services outside of other methods to access the Internet abroad, can turn
China,” he said. “In the past, any effort to cut off internal to authorized telecommunications entities,” the ministry
corporate VPNs has been enough to make a company said in its brief statement. “The (January) notice will not
think about closing or reducing operations in China. It’s affect normal operations” (Chan). Even if Bloomberg’s
that big a deal,” he added (Yang, Larson, and Ho). sources were reliable, it wouldn’t be the first time
Chinese authorities have espoused such rhetoric. China
By July 2017, Apple removed all major VPN apps already blacklists the IP addresses and domains of known
from the App Store in China. The computer giant issued VPN servers outside the country at infrequent intervals.
a statement claiming it was “required” to remove the In the past, these actions have caused some VPNs like
apps because they violate Chinese law. The Chinese Astrill to be almost completely shut down for users on
government effectively illegalized VPNs when new the mainland. Most, however, only suffer temporary
rules issued in January 2017 required them to receive downtime until they’ve had a chance to update their
government approval in order to operate. Unlike Google, software and server addresses (Bischoff ).
Apple has been allowed to operate its own app store
within China. But to do so, it must abide by Chinese laws However, no denial was published concerning many
and regulations. That means when Chinese authorities other Western articles that appeared. Reuters reported
request for an app to be removed from the App Store, earlier in July 2017 that that the Great Firewall had
Apple must remove it if it wants to maintain a presence been “upgraded” with new capabilities. VPN services
in the country. subsequently found that they had been hit by the
most sophisticated attacks from China to date (Carsten,
ExpressVPN wrote on its blog, “We’re disappointed Rajagopalan, Wee). One of these upgrades seems to be
in this development, as it represents the most drastic against high-end hotels. Plush international hotel lobby
measure the Chinese government has taken to block the were one of the few places to find gaps in the Great Firewall
use of VPNs to date, and we are troubled to see Apple as they often offered brief free-internet with access to
aiding China’s censorship efforts. ExpressVPN strongly VPN services. Regulators have warned firms providing
condemns these measures, which threaten free speech Internet networks for hotels to stop offering, or helping
and civil liberties.” Going direct to Apple is becoming an to install VPNs into hotel systems. “We received notices
effective way to enforce censorship since the U.S. firm recently from relevant (government) departments, so we
controls what apps are available in China. The tactic don’t make recommendations anymore,”said a marketing
proved successful for China earlier in 2017 when Apple manager at Chinese hotel network provider AMTT Digital
removed the New York Times app from the Chinese App told Reuters. He added this was linked to increased
Store. The Times and Wall Street Journal are among a government scrutiny over the use of unauthorized VPNs
number of international news sites blocked in China. (Li, Cadell).
It’s unclear whether similar action has been taken with
Android stores in China. The Google Play Store is not In September 2017, a Jiangsu IT engineer has been
present in China, where a handful of third-party app detained for three days for selling VPN services as China
stores are the most influential distributors of Android cracked down on online cross-border operations without
apps (Russell). approval. Nanjing police detained the engineer for three
114
