> If I host in Europe or US would the speed of traffic going into China be very slow?
I'm not sure, but I guess it should be nowhere near 1Gbps. You'll have to test it to find out.
> How can startups in China handle that kind of hosting cost?
It's mainly bandwidth that's expensive, but there is cheap cdn/cloud storage for static files, like videos. Then you can also pay by traffic, which is around $0.12/Gb.
I'm not sure, but I guess it should be nowhere near 1Gbps. You'll have to test it to find out.
> How can startups in China handle that kind of hosting cost?
It's mainly bandwidth that's expensive, but there is cheap cdn/cloud storage for static files, like videos. Then you can also pay by traffic, which is around $0.12/Gb.