CNNIC passed a rule at the end of last year that essentially means only companies registered in China can hold .cn domains http://www.cnnic.net.cn/html/Dir/2009/12/12/5750.htm
You can host whatever TLD site you want in China (.com etc.) You just need to register it and get an ICP (beian). It's a form of publishing and all publishing is controlled. So why would you host in side of China? Speed. Traversing the GFW slows everything down.