Why do internet challenges exist in China?

Considering the fact that there are 668 million internet users by June 2015 in China, it is surprising to see that the penetration rate is only 48.8 percent and China has a limited amount of international bandwidth with countries overseas as well. In addition, since there are only three landing places for ocean optic fiber cabling systems in China – Qingdao, Shanghai and Shantou, it can be seen that international internet exit locations are limited as well.