The saying goes that China is the world’s factory. For many companies around the world, their products or components of their products are produced in mainland China. At the same time, China’s population of more than a billion people makes it one of the world’s largest consumer markets. Thus, for either production or sales, many companies want to do business in China and have established facilities there.
On the networking front, this means that multinational companies need to extend their wide area network into China to support their large or rapidly growing operations—and that’s easier said than done.
Many organizations had done this using VPNs, but in early 2018, the Chinese government placed restrictions on IPsec traffic to basically block it from going in and out of the country. The Ministry of Industry and Information Technology (MIIT) said these restrictions are in accordance with the China Cross-border Data Telecommunications Industry Alliance (CDTIA), which was created to regulate cross-border data communication.
Thanks to Linda Musthaler (see source)