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I have friends in China and have lived there for about half a year, so I have good insight into how they have been doing the Internet and will probably continue to do the Internet.
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I've lived in Asia almost all my life and speak Chinese. I can assure you that mainland Chinese find it much more natural to communicate in chinese characters than pinyin. Have you ever looked for directions in Shanghai with an address scribbled in pinyin? Good luck with that ;-)