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Censorship is not the only problem - the filter also makes visiting foreign web sites intolerably slow, so people don't even bother.

One solution is to host your stuff in Hong Kong (which is what Google did). It's fast for both foreign and Chinese mainland visitors, it's not under the juridiction of the censorship bureau, and there's a more mature legal system in place.

AFAIK, every western company that does business in China and every Chinese company that does businesses overseas has a presence in Hong Kong.

Piracy and licensing is other huge problem. Stealing licences of software product is normal approach even in companies which have close ties with corporations in US. Meaning even repackaging and distributing copies of enterprise software to other clients.

Bigger problem is cost of registering a legal Chinese company and then collecting payments, along with restrictions on foreign ownership.