China Internet users use VPN servers to cross firewall

By Ralph Jennings

BEIJING, Jan 27 (BestGrowthStock) – Paid virtual private networks
(VPNs) are quietly catching on in China as a way to access
forbidden websites, analysts say, while authorities are leaving
them alone until they become more popular.

VPNs designed for secure Internet use in offices have
spread over the past half year among expatriates and tech-savvy
Chinese since the popular social networking website Facebook
was blocked.

Twitter and YouTube are also blocked in China, which uses a
filtering “firewall” to block Internet users from overseas
website content that challenges the Communist Party.

The rise of VPNs comes as China defends its curbs on the
Internet after the world’s biggest search engine provider,
Google Inc (Read more about Google Stock Analysis). (GOOG.O: ), threatened to shut down its Chinese
Google.cn site over censorship and a severe hacking attack.
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“So long as the VPN is outside of mainland China, it should
not be a problem,” said Danny Levinson, publisher of
ChinaTechNews.com. “We use our own VPN and it works fine.”

Chinese authorities seldom block foreign-based paid VPNs
and are likely to leave them be as long as the number of users
stays small, a veteran IT analyst in Beijing said.

“It’s a little steam valve,” the analyst said. “But if
China’s army of netizens gets in on these things, there you
are.”

The government aggressively shuts down free proxy servers,
which can also unblock forbidden sites and are more widespread.
Paid foreign VPNs have been blocked just once, ahead of
National Day in October last year, users say.

About 10 foreign VPN services are popular in China, but
there are no estimates on the number of users, China IT
analysts say.

VPNs work as overlays on top of larger computer networks,
using encryption to make private traffic safe in the less
secure environment of the Internet.

“In China, accessing Facebook and Twitter are the main
reasons why clients sign up,” said Chris Matthews, who runs the
California-based Freedur and targets expatriates.

“The Chinese government doesn’t care about us, they just
don’t want their citizens stumbling upon something on the
Internet that will cause them to (raise) questions.”

But technical and cost obstacles could stall growth in
China’s VPN use outside offices, analysts say.

Some VPNs bring Internet browsers to a crawl or require
users to make tough changes to their computer systems before
working at all, they say, while Chinese nationals without
foreign currency (Read more about trading foreign currency. credit cards often have no way to pay for
them.

Investing Advice
(Additional reporting by Melanie Lee in Shanghai)

China Internet users use VPN servers to cross firewall