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I'm currently in China. VPNs are very common and popular here. Many work very poorly unfortunately (Private Internet Access included). Astrill appears to be the most popular and best performing. A few high-end hotels that I've stayed at route all traffic through a VPN to cater to their Western audience.

Many, many people with little technical ability use a VPN, especially in businesses dealing with the West.

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There are better VPNs for China: http://www.greycoder.com/openvpn-china/

The vast, vast majority, though, of the Chinese internet population do not use VPNs, nor will they when most of what they want/need is available on domestic sites. The slice of the population that deals with the West is tiny, and comparatively unlikely to cause problems. The chilling effect that just needing a VPN has on exploration of accurate foreign information about China and what's happening in the country is substantial and intended.

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