The Great Firewall of China‘s effects on financial brokers

While some believe that the Great Firewall of China will eventually become nothing more than a memory, the nationwide censorship initiative is very much a current reality for the financial brokers hoping to break into or successfully navigate the Chinese market.

And the reality is this intangible, yet powerful, barrier is gaining strength. Here's a quick look at how it affects global forex brokers.

Background information

China is known for its strict policies regarding information control in comparison to the regulations adopted in other countries. The Golden Shield Project, often called the "great firewall of China", is an initiative managed by the Ministry of Public Security division of the Chinese government. As the nickname implies, the focus of this project is to monitor and censor what can and cannot be seen through an online network in China. This project started in 1998 and is still continually improving in restriction techniques through multiple methods. The OpenNet Initiative performed an empricial study that concluded that China has "the most sophisticated content-filtering Internet regime in the world". Some technical methods used are IP blocking, which denies the IP addresses of specific domains, packet filtering, which scans packets of data for controversial keywords, credit records, and speech and facial recognition.

Effect on brokers

Many users and businesses have tried to find their way around the firewall via VPNs and other technological tricks, though they've still succumb to lagging speeds. The Chinese government has blocked many VPNs, leaving many businesses scrambling to find a new way around the barrier. 

​Brokerages and electronic trading firms are constantly running into slow transaction speeds while operating in China, especially during peak hours with increased Internet traffic. What's even worse is that some brokers' website have been blocked. These are firms with huge retail customer bases in the mainland.

​Though the complex Chinese landscape presents unique challenges, it's a burgeoning market for forex traders for a reason. The country's massive population and status as the worlds' second largest economy make for a potentially profitable situation for brokers, who could also enjoy less competition in the East.

Fazzaco, as an industry-leading B2B forex portal, is always here to assist forex brokers in entering and succeeding in Chinese market with our professional team and in-depth undertanding of China's policy. We are able to help with this in a very comprehensive way. For further information please visit Fazzaco​​ – we are committed to working with you to ensure your business thrives via the correct and sustainable channels.