In China? I've read that sentence like six times I'm not quite sure what you're alluding to, but China's had fiber for about 10 years now. The reason they allowed it is because increasing everyone's bandwidth doesn't really make the job of monitoring them any harder. It's still the same number of connections. Plus it allows businesses to be competitive on the global market.

Also they kind of assume their firewall would work. Initially it did work, at least for the majority of people, but over time that more and more have learnt to use a VPN and now the whole thing's a bit of a pointless exercise. There is a massive disconnect in China between the younger generation who use VPNs and the older generation who just consume state media.