It's difficult to run an internet-based business in China. Not impossible, but difficult. If you're hosting inside China, then you've got to get a license fro

It's difficult to run an internet-based business in China. Not impossible, but difficult. If you're hosting inside China, then you've got to get a license from the government to run a website. To get said license, you must comply with all of the regulatory restrictions, which basically means total governmental access. As the article says, you are liable for anything that your users do, so it's in your best interest to self-police. For extra fun, the laws aren't all published and can change at any time. You've also got all the issues of running a corporation in China, which requires a very different skillset than the U.S. or Europe. Corrupt government officials combined with savage (and well-connected) competitors is the norm. Plus, rule of law is weak. Get ready for some real hardball. Hosting in Hong Kong or Korea is easier, but then you're susceptible to the Great Firewall. If you're on the government shitlist for any reason, your website just goes poof for all your customers. You'll probably also have difficulty getting money from inside China to outside China. There's definitely people that make it work, and my hat's off to them. However, for most people the U.S. and Europe has a heck of a lot less friction.