China opens VPN services to foreign investment in Beijing
- A policy update now permits foreign investors to own up to half of each virtual private network service provider in Beijing
- The State Council has also relaxed foreign investment controls on information services, performing arts, overseas travel and education
The municipal government of Beijing has won the green light from China’s cabinet to allow up to 50 per cent of foreign ownership in virtual private network (VPN) services, widely used by multinational corporations operating in the country to skirt the Great Firewall and connect to overseas servers.
China plans to open up VPN services in Beijing to foreign investment
The relaxations come at a time when China has been tightening control over various industries, including data, education and content.
While the Chinese government permits companies to seek special approvals to use VPNs to access foreign websites blocked in China, such as Google, Facebook and most major international news platforms, authorities have also been stepping up efforts to clamp down on providers offering VPN services without permission.
Monday’s policy amendment includes eight directives aimed at boosting Beijing’s various service industries, including technology, entertainment and education.
Foreign businesses are encouraged to invest in adult education and vocational training in Beijing, with specific policies to be enacted by the municipal government. Foreign investors are also authorised to set up travel agencies to organise tours overseas, except to Taiwan, and can make donations to non-profit nursing homes in Beijing.
The amendment, with immediate effect, may be adjusted in due course according to how the pilot scheme proceeds, said the State Council.