Legal Consequences of VPN Circumvention: Administrative Penalties and Criminal Liability

6/19/2026 · 2 min

1. Legal Characterization of VPN Circumvention

In China, establishing or using unauthorized VPNs or other illegal channels for international networking is explicitly defined as illegal. According to Article 6 of the Provisional Regulations on International Networking of Computer Information Networks, no unit or individual may establish or use other channels for international networking without approval. Violators shall be ordered by the public security authorities to stop networking and may be fined up to 15,000 RMB.

2. Application of Administrative Penalties

For individual users, simple VPN circumvention typically results in administrative penalties. Public security authorities may, under Article 14 of the same regulations, issue warnings, confiscate illegal gains, and impose fines. In practice, fines usually range from 1,000 to 5,000 RMB, and up to 15,000 RMB for serious cases. Additionally, authorities may order cessation of networking and confiscate devices used for circumvention.

3. Boundaries of Criminal Liability

When VPN circumvention goes beyond personal use and involves commercial operation, provision of tools, or serious circumstances, it may escalate to criminal liability. Key offenses include:

  • Crime of Illegal Business Operation: Under Article 225 of the Criminal Law, engaging in business operations without a license for goods subject to state monopoly or restricted items, disrupting market order, and with serious circumstances, is punishable by up to five years of imprisonment or criminal detention, and/or a fine of one to five times the illegal gains. Providing VPN services constitutes unlicensed telecommunications business, and numerous court precedents exist.
  • Crime of Providing Programs/Tools for Intrusion into Computer Information Systems: Under Article 285(3) of the Criminal Law, providing programs or tools specifically used for intruding into or illegally controlling computer information systems, or knowingly providing such tools to others for illegal activities, with serious circumstances, is punishable by up to three years of imprisonment or criminal detention, and/or a fine. VPN tools are often deemed as "programs specifically used for intrusion."

4. Judicial Practice and Typical Cases

In recent years, courts across China have rendered guilty verdicts against VPN service providers. For instance, in a 2021 case, the defendant set up VPN servers and provided circumvention services to hundreds of users, collecting over 200,000 RMB in fees. The court sentenced him to three years of imprisonment and a fine of 100,000 RMB for illegal business operation. In another case, a defendant who developed and sold VPN software was sentenced to two years of imprisonment for providing tools for intrusion into computer information systems.

5. Risk Prevention and Compliance Suggestions

For enterprises and individuals, it is advisable to strictly comply with China's internet laws and regulations and avoid using unauthorized VPN services. Enterprises needing international networking should apply for dedicated lines or use approved cross-border communication services through legal channels. Individual users should enhance legal awareness and avoid violating the law out of curiosity or convenience.

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FAQ

Will individuals be punished for using VPNs to circumvent restrictions?
Not necessarily. In practice, the probability of punishment for individual use is low, but if discovered by authorities, individuals may face administrative penalties such as warnings or fines. If the activity involves commercial operation or tool provision, criminal liability may arise.
What crimes may be committed by providing VPN services?
Providing VPN services may constitute the crime of illegal business operation or the crime of providing tools for intrusion into computer information systems. The former applies to unlicensed telecom business, while the latter applies to providing software or tools specifically used for circumvention.
How can enterprises legally access international networks?
Enterprises should apply for dedicated international communication gateway lines through legal channels, or use cross-border communication services approved by the Ministry of Industry and Information Technology, such as legitimate SD-WAN services or international private lines.
Read more