For the record, I have absolutely nothing against Chinese domains.
I owned a good number of them, and many of them were good - statistically speaking (search volume, serps, etc). However, they didn't get any traffic.
If the Chinese government is going to play this sort of politics (arbitrarily blocking stuff at the GFW), and Baidu won't index them, then as an investment class they are beyond my capabilities. I don't speak Chinese, so I can't develop them. I tried to find Chinese partners over time, but it was nearly impossible to establish any sort of meaningful business relationship. Therefore, as an investment class, Chinese domains are not for me.
I would love to see the NXDOMAIN logs from a Chinese ISP for just one month. Or even better, the logs from the GFW for all blocked requests beginning with "xn--". I bet the numbers are mindblowing. But it doesn't help me if they don't let the traffic out of the country.
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