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China Tells Carriers to Block Access to Personal VPNs by February - Bloomberg


From: "Dave Farber" <farber () gmail com>
Date: Tue, 11 Jul 2017 16:43:41 -0400



Begin forwarded message:

From: Allan Davidson <alland () heckerty com>
Subject: China Tells Carriers to Block Access to Personal VPNs by February - Bloomberg
Date: July 11, 2017 at 4:29:46 PM EDT
To: Dave Farber <farber () gmail com>

Hi Dave

Another story that may be of interest to the list membership

Best


Allan

https://www.bloomberg.com/news/articles/2017-07-10/china-is-said-to-order-carriers-to-bar-personal-vpns-by-february 
<https://www.bloomberg.com/news/articles/2017-07-10/china-is-said-to-order-carriers-to-bar-personal-vpns-by-february>

China Tells Carriers to Block Access to Personal VPNs by February
July 11, 2017, 11:50 AM GMT+9
Bloomberg News
2018 deadline to stop individuals from accessing global web

Tightening controls come amid Xi’s goal of "cyber-sovereignty"

China's Great Firewall Gets Tougher

China's Great Firewall Gets Tougher

China’s government has told telecommunications carriers to block individuals’ access to virtual private networks by 
Feb. 1, people familiar with the matter said, thereby shutting a major window to the global internet.

Beijing has ordered state-run telecommunications firms, which include China Mobile 
<https://www.bloomberg.com/quote/941:HK>, China Unicom <https://www.bloomberg.com/quote/762:HK> and China Telecom 
<https://www.bloomberg.com/quote/728:HK>, to bar people from using VPNs, services that skirt censorship restrictions 
by routing web traffic abroad, the people said, asking not to be identified talking about private government 
directives.

The clampdown will shutter one of the main ways in which people both local and foreign still manage to access the 
global, unfiltered web on a daily basis. China has one of the world’s most restrictive internet regimes, tightly 
policed by a coterie of government regulators intent on suppressing dissent to preserve social stability. In keeping 
with President Xi Jinping’s “cyber sovereignty” campaign, the government now appears to be cracking down on 
loopholes around the Great Firewall, a system that blocks information sources from Twitter and Facebook to news 
websites such as the New York Times and others.

While VPNs are widely used by businesses and individuals to view banned websites, the technology operates in a legal 
gray area. The Ministry of Industry and Information Technology pledged 
<http://www.miit.gov.cn/n1146290/n4388791/c5471946/content.html> in January to step up enforcement against 
unauthorized VPNs, and warned <x-msg://17/news/terminal/OK9F9W6TTDS2> corporations to confine such services to 
internal use. At least one popular network operator said 
<https://www.bloomberg.com/news/articles/2017-07-03/china-s-great-firewall-gets-tougher-as-popular-vpn-shut-down> it 
had run afoul of the authorities: GreenVPN notified users it would halt service from July 1 after “receiving a 
notice from regulatory departments.” It didn’t elaborate on the notice.

Click here for an explanation of the ban and VPN in China. 
<https://www.bloomberg.com/news/articles/2017-07-11/how-china-s-vpn-ban-asserts-digital-sovereignty-quicktake-q-a>
Exclusive insights on technology around the world.
Get Fully Charged, from Bloomberg Technology.
It’s unclear how the new directive may affect multinationals operating within the country, which already have to 
contend with a Cybersecurity Law 
<https://www.bloomberg.com/news/articles/2017-05-24/foreign-firms-fret-as-china-implements-new-cybersecurity-law> 
that imposes stringent requirements on the transfer of data and may give Beijing unprecedented access to their 
technology. Companies operating on Chinese soil will be able to employ leased lines to access the international web 
but must register their usage of such services for the record, the people familiar with the matter said.

Shares in U.S.-listed 21Vianet Group Inc. <https://www.bloomberg.com/quote/VNET:US>, a provider of networking and 
datacenter services to Chinese clients, slid as much as 4.1 percent before ending 2.4 percent lower. Westone 
Information Industry Inc. <https://www.bloomberg.com/quote/002268:CH>, which helps to set up VPNs and secure 
networks, fell as much as 1.5 percent Tuesday.

“This seems to impact individuals” most immediately, said Jake Parker, Beijing-based vice president of the US-China 
Business Council. “VPNs are incredibly important for companies trying to access global services outside of China,” 
he said. 

“In the past, any effort to cut off internal corporate VPNs has been enough to make a company think about closing or 
reducing operations in China. It’s that big a deal,” he added.

China Mobile Ltd. <https://www.bloomberg.com/quote/941:HK>, the Hong Kong-listed arm of the country’s biggest 
carrier, declined to comment. Representatives for publicly traded China Telecom Corp. and China Unicom (Hong Kong) 
Ltd. couldn’t immediately comment. The ministry didn’t immediately reply to an email seeking comment.

— With assistance by Steven Yang, and Christina Larson

Before it's here, it's on the Bloomberg Terminal. LEARN MORE <https://bloom.bg/dg-ws-core-bcom-a1>

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