The well-known new Chinese news site The Paper recently reported that the Ministry of Industry and Information Technology has released a draft of the amended Internet Domain Name Regulations to the public for comments. Article 37 of the new Regulations caused considerable controversy. It requires the Chinese authorities to service and administer domain names (such as Microsoft.com) that connect to the Internet from within China. If they do not, Chinese Internet Service Providers (ISPs) are prohibited from connecting the domain owner’s computers to the internet. In addition, according to earlier business regulations, all companies conducting business in China must locate server and storage computers in China. In theory, under the new Regulations, international companies such as Apple and Microsoft will have to move their domain names to China to continue doing business in China. China started its amendment work on the Internet Domain Name Regulations in 2013, hoping to strengthen Internet administration, resource management, and “purify” the Internet environment. Chinese technical experts contend that China’s domain administration lacks the level of security protection that matches the current standard that the major foreign providers offer.
Source: The Paper, march 29, 2016