It is an impediment to running some new site you just want to throw at the wall and see what happens. This is truly a loss. But for the most part these rules

It is an impediment to running some new site you just want to throw at the wall and see what happens. This is truly a loss. But for the most part these rules have always been challenging. I've had to run down to a Shanghai IDC in years past to show proper company backing for my server. The gov calls the IDC and says we're going to do an audit next week. The IDC looks through it books to see who doesn't have their records up to date and calls to try to mitigate any interruption in service. For a local Chinese with a plan to launch a startup, you need to get your corporate paperwork in order anyway just as you would in the U.S. In that regard, this is just one more set of forms to fill out. This change is a larger barrier for foreigners that can't read mandarin and understand current Chinese regulation. For them, they're used to being able to go to any number of web sites, typing in their credit card and owning a domain.