Briefly, Chinese market analysis firm Analysys says that rumors of Skype's demise in China are greatly exaggerated. Or, at least, will prove unfounded in the long run. Their thoughts:
News background:
An American company Verso Technology recently released that they are doing a paid trial for a major telecom operator in China to block VoIP calls made using Skype.

Quick analysis:
Although Verso did not reveal the name of the telecom operator, it has become a public secret that it should be China Telecom. MII had defined the P2P service like VoIP provided by Skype as basic telecom service to defend the interest of fixed-line telecom operator. And this provide China Telecom sufficient reason to block Skype. But China Telecom's attitude towards Skype is proactive: they are conducting trials to block Skype; on the other hand, they are actively preparing strategies to face the challenge of various possibilities in the future.

Our position:
Analysys International thinks that the blocking is only a short term action even if it is confirmed. VoIP services have rapidly occupied the market by its innate advantage, which reflect the gradual change of users' communication habit and their further demand for lower communication cost. This will pose great threat to traditional fixed-line operators and force them to proactively transfer both in strategy and service aspects. Therefore adopting cooperation strategy will be a more effective way to face the challenge.
Let's hope they are right! Of course, if you want to read any more, you gotta buy their report on the Chinese VoIP market. A bargain at only US$2400. At prices like that, you might as well use China Telecom to make your long distance calls and have done with it.