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.
The policy update, announced by the State Council on Monday, also lifted the foreign investment caps on information services for app stores at the Zhongguancun Science Park, known as Beijing’s Silicon Valley, as well as internet connection services in designated pilot zones. Overseas investors were previously barred from owning more than half of any joint ventures in these sectors.
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