Wouldn't it be nicely ironic if the Internet decided to block China? I wonder how it would play, when the Chinese government offices used to unrestricted access suddenly found themselves surfing the Chinese Intranet behind the Great Firewall blocking Chinese traffic from the rest of the world...
Anyway, we shouldn't be surprised when new and inventive methods are found for accomplishing old goals. While technology is always developed to allow people to circumvent out-of-date censorship rules, we should expect that the rules and enforcement mechanisms will eventually be updated. This particular method doesn't seem to have much teeth; future attempts might, but it would be usual practice for innovative folks in China to make their own way around the rules. Economic reality suggests that Western technology organizations won't do it for them.
Nathan