China has unveiled its plan to allow foreign firms to invest in VPN services. The city of Beijing expressed some plans regarding overseas investment in VPN service with a trail zone. The trail zone will run-up to the end of the year as a part of attracting foreign investment in the country. According to Beijing Municipal Bureau of Commerce, foreign investors from the world will be allowed to invest in VPN services, and the foreign ownership in VPN providers will be at 50%.
The State Council has already approved the relaxation in January about its restriction on foreign investment in VPN services. The foreign telecom operators will come to provide VPN services for foreign-invested companies in Beijing. The Beijing Municipal Government has proposed the new policy as a part of a three-year plan. Beijing city’s economy slowed to 6.3% during the first half of 2019. The new policy will open up the service sector to stabilize the economy.
China is currently blocking access to 135 of the world’s top 1000 websites. And foreign firms which are working in the country, are relying on VPN services through data security and VPN apps in order to do business. The Municipal Government will also allow online games and video programs to welcome foreign investment after meeting with Chinese data security standards. The foreign investment in online news, publishing, audio, and video is still banned by China. Initiative to open up foreign investment in VPN services is showing China’s soft gesture towards its traditional views on VPN service with its areas.