Chinese Domain Market Newsletter

April 5, 2016 (Tue)

Who Will Benefit From the Tight Domain Name Control?

The Chinese government has recently released a draft and is asking for comments on the new regulation to control domain name registration.

While the text is still not very clear, my understanding is that if you want to host your website on a web server in China (for good performance), the domain name must be registered with a registrar inside China (then, the government has your information). If you don't care about the slow speed (or even firewall) for Chinese people to access your contents hosted on a server outside China, then the Chinese government is OK with it.

Now, if this draft becomes law, who will benefit?

Obviously Chinese registrars will gain a lot when Chinese companies move back to Chinese registrars from overseas registrars (Godaddy etc.). Registrars in Hong Kong may benefit as well because it's part of China (a domain name registered in Hong Kong should be taken as that registered in China) yet offers much freedom and rule of law. Finally, .cn investors may gain if people become concerned that the government may impose further restriction on .com-based business and so .com-based businesses may be compelled to buy the matching .cn domain names.