Facebook opening $30M subsidiary in China

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The hub will open with the aim of supporting "Chinese developers, innovators and start-ups", and will look to follow the model of similar hubs already open in countries such as France, Brazil, India and Korea, according to CNBC.

A notice published on China's National Enterprise Credit Information Publicity System listed the company as Facebook Technology (Hangzhou) Co., Ltd., and noted that it is wholly owned by Facebook Hong Kong Limited. Facebook has been banned in China for years with no hope of overcoming what has been called the Great Firewall of China. "We're a long time away from doing anything" in China, Zuckerberg told technology news site Recode. Mark Zuckerberg went as far as learning Mandarin, and going for a jog around Tiananmen Square in March 2016. Chinese web users can not access search engines, news outlets, and social media sites such as Google, YouTube, and Twitter; instead they use Chinese equivalent sites such as Baidu, Youku and Weibo.

The world's largest social network has lost its ability top operate an innovation hub in China just a day after it was allowed to do so.

The Chinese government has ordered the social media site to move portals offline for a week after spreading "obscene and wrongly oriented content".

Don't expect China to ease restrictions on Facebook just because it has opened up a $30 million subsidiary.

Google parent Alphabet sees record highs despite European Union fine
The headlining story of this release is that the market was surprised by Google acheiving far stronger ad sales than expected. Alphabet has also branched out into a range of other areas, including cloud computing, YouTube and driverless cars.

Oculus, Facebook's virtual reality company, has a Shanghai office, and the company is interested in China for its growing hardware ambitions.

Besides this, Facebook earns huge revenue from China even without any physical presence in the nation before now.

The decision does not necessarily spell the end of opportunities for Facebook in China, and the government's withdrawal does not mean Facebook was close to bringing its social network into the country, said investors who have worked in China.

During the past two years, censorship controls have hardened under President Xi Jinping's administration and this has left the Silicon Valley internet behemoths looking for new ways to enter the sector without being wrapped up in regulatory red tape.

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