The fact that the internet service for regular users is terrible does not mean that China does not have the capacity to make it otherwise. My impression of China's relationship with the internet is that they would prefer if their citizens stayed off it. Maybe the crap service for the average person is intentional?
Yeah, it could be by design, and yes a number of corporations have direct fiber lines out to Japan. I used to work at Microsoft in Beijing, which had a line out to Japan and it was easily the fastest internet I've ever use in my life (goes without saying also uncensored).
