Proving how risky any type of seemly innocuous business in China can be, Jinan Yinquan Technology, a wholly-owned subsidiary of China VoIP & Digital Telecom Inc., states its business has been impacted with a temporary block of VoIP services after the recent riots in northwestern China.

As a result of the political riot on July 5 in Urumqi, the capital of Xinjiang Uygur Autonomous region, China issued an order to block the VoIP services temporarily. Thus, CVDT's VoIP services are impacted.

Li Kunwu, CEO of the company, stated, "The block of VoIP services is a political need at this time. It only affects customers in Shandong Province. Our large enterprise clients outside of Shandong area can continue to use the services without interruption. We are doing everything we can to keep our customers informed. Currently, VoIP services have been resumed in certain regions."

Over the past two years, other VoIP providers, such as Skype, have also experienced outages and blocks on their services in China.

Li added, "The block happened this time is a special issue. It doesn't mean that the country denies VoIP services completely. Since we have shifted our business focus to virtualization technology, it is unlikely this government action will result in large losses to the company."