From China Tech News:
In response to foreign media reports that China might
create its own top-level domain names to create its own intranet, a
spokesperson from the China Internet Network Information Center (CNNIC)
clarifies that China will not create its own root servers.
The representative says the misunderstanding was caused by the ambiguous English in local English media which seems to tell readers that China will use the .cn domain extension to replace .com and .net.
According to ICANN and CNNIC, though China has its own Chinese domain name system, the only change that China has made in the past four years was to add a Chinese language .mil domain name, but even that was done under .cn.
(You can also read the official albeit slightly cryptic press statement from the CNNIC website.)
The miscommunication continues: here, CNNIC is referring to the .cn domain, while the “foreign press” was concerned about new root servers under the new Chinese domains .公司,.网络 and .中国.