Foreign-run VPNs illegal in China: govt
globaltimes.cn - 
Officials and experts in China's Internet industry have said that it is illegal for foreign companies to operate a VPN business in China.
Three overseas VPN service providers, Astrill, Witopia and StrongVPN apologized Thursday that their service to residents in the Chinese mainland has been blocked due to a recent upgrade of the GWF. Astrill claimed that most VPN protocols have been blocked, and that many foreign companies have been influenced.
"As far as I know, companies running a VPN business in China must register with the Ministry of Industry and Information Technology. I haven't heard that any foreign companies have registered," said the designer of the GFW Fang Binxing.
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Of course they are illegal, isn't that the whole idea? What a bizarre article.
It does, however, have this comment, which is one of the funniest things I've read all year:
"I, for one, am shocked and appalled that certain people in China try to illegally circumnavigate the internet filtering software. We all know that the GFW is there to protect us from the lies and slander that Xinhua put on Twitter."