Police confiscate ‘illegal income’ of developer deemed to have used ‘unauthorised channels’ to connect to international networks
A programmer in northern China has been ordered to pay more than 1 million yuan to the authorities for using a virtual private network (VPN), in what is thought to be the most severe individual financial penalty ever issued for circumventing China's "great firewall." The programmer, surnamed Ma, was issued with a penalty notice by the public security bureau of Chengde, a city in Hebei province, on August 18. The notice said Ma had used "unauthorised channels" to connect to international networks to work for a Turkish company. The police confiscated the 1.058m yuan ($145,092) Ma had earned as a software developer between September 2019 and November 2022, describing it as "illegal income," as well as fining him 200 yuan ($27).
Charlie Smith (a pseudonym), the co-founder of GreatFire.org, a website that tracks internet censorship in China, said: "Even if this decision is overturned in court, a message has been sent and damage has been done. Is doing business outside of China now subject to penalties?"
The police confiscated the 1.058m yuan ($145,092) Ma had earned as a software developer between September 2019 and November 2022, describing it as "illegal income," as well as fining him 200 yuan ($27).
The programmer, surnamed Ma, was issued with a penalty notice by the public security bureau of Chengde, a city in Hebei province, on 18 August.
Ma said the police seized his phone, laptop and several computer hard drives upon learning that he worked for an overseas company, holding them for a month.
Charlie Smith (a pseudonym), the co-founder of GreatFire.org, a website that tracks internet censorship in China, said: “Even if this decision is overturned in court, a message has been sent and damage has been done.
VPNs, which help users circumvent the “great firewall” of internet censorship by making it look as if their device is in a different country, operate in a legal grey area in China.
The government generally turns a blind eye to the relatively small number of individuals who use the technology to access websites such as Google, Facebook, Twitter and, often, view pornography.
In June, Radio Free Asia reported that a Uyghur student, Mehmut Memtimin, was serving a 13-year sentence in Xinjiang for using a VPN to access “illegal information”.
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All countries will confiscate illegally obtained income. Want to work cross-border? Do it with the proper visas, permissions, tax reporting, residencies, etc. There's no story here, just more China hate to help beat the drums of war.
The specific laws vary of course, but a person cannot receive work related income from a foreign entity without reporting it correctly, both in the country in which the company is located and the country in which the employee is located. Even within the EU for example, with its freedom of movement for people, goods, and capital, cross border income must be correctly accounted for by both parties.
This is just a sovereign government doing what all sovereign nations do. If nations didn't do this the consequences for even just tax collection would be immense, not to mention the many other negatives.
There's no need to throw China bashing into every subject under the stars just because that's apparently what counts for journalism these days.
Its not illegal to use VPNs in free counties. In China the government is in absolute control over the people and they use brainwashing techniques to keep everyone in line.
VPNs allow people to see options outside the state sanctioned media which is a threat to the people in power.