If selling software as a service in China is part of your business plan, it’s time to revamp. On Harris & Moure’s China Law Blog, Dan Harris recently published an e-mail from one of his lawyers explaining how and why it’s a problem in The People’s Republic.
“The short answer is that foreign companies cannot provide software as a service in China,” the e-mail starts. Firstly, the lawyer explains this means it cannot be done with a server located outside of China or from a wholly foreign-owned enterprise with servers inside of China. To bolster the point, the lawyer points to the fact that if SaaS was available, companies such as Amazon, Oracle and Microsoft would be “all over the issue.” But “they are not, and it is not due to a lack of interest.”
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