CHINA DENIES REPOTS THAT IT WILL LIFT GREAT FIREWALL

The Chinese government denies reports from earlier this week that it would lift its “Great Firewall” in a newly created free-trade zone area within Shanghai.  Hong Kong paper South China Morning Post announced the lift several days ago, claiming the policy reversal is part of a broader effort on behalf of China to promote Shanghai as a financial hub that rivals New York or London. The free-trade zone in the city’s Pudong section will go into effect on September 29.

China banned several social media sites including Facebook and Twitter in 2009. Such Internet regulations have made it difficult for companies to reach the country’s rapidly growing middle- and upper-class consumers. As China’s economy continues to expand, consumption of foreign products has increased and e-commerce serves as a critical channel to access and acquire these new customers. However, brand awareness development and establishing product and company positioning is difficult as multiple digital marketing channels are closed to Western companies targeting the region. It will be interesting to see what impact the free-trade zone has on China’s rapidly developing economy.