China’s VPN Strategy: Potential Opening for Up to 50% Foreign Ownership Under New Plans
China has announced new guidelines that allow foreign ownership of up to 50% for each VPN (Virtual Private Network) provider in the country, as part of efforts to boost foreign direct investment (FDI) rates. The move is part of a larger set of measures that include fiscal and tax support for foreign firms, establishment of research and development centers, and enhanced intellectual property protections.
The decision to increase foreign ownership in VPN services has raised suspicions within the industry, considering China’s strict control over businesses and the government’s history of tech company governance. VPNs, while not illegal, require government authorization to operate, and unauthorized VPN software is banned by the Chinese Communist Party (CCP).