China's war on VPNs creates havoc at foreign companies

Internet crackdown is holding businesses hostage behind the infamous Great Fireweall

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Customers use computers at an internet cafe in Taiyuan, Shanxi Province.

YU NAKAMURA, Nikkei staff writer

GUANGZHOU -- China has been shutting down virtual private networks, or VPNs, that have allowed users uncensored access to the outside world, with President Xi Jinping calling internet technology a new challenge to sovereignty and security.

The crackdown is causing problems for foreign businesses in the country, as they are now forced to choose between isolation, surveillance or withdrawal.

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