Looking to Make Inroads, Facebook Opens Subsidiary in Mainland China

After years of being banned in China, Facebook is looking to make inroads there with a $30 million subsidiary called Facebook Technology, located in the city Hangzhou, where Alibaba is also headquartered.

The business plan for the social media giant is to establish a startup incubator which aims to spread out small investments while giving advice to local businesses, according to an anonymous source speaking to Reuters.

Facebook told The Verge, “We are interested in setting up an innovation hub in Zhejiang to support Chinese developers, innovators, and start-ups.”


The company has similar incubators in South Korea, France, Brazil and India.

The subsidiary is owned by Facebook Hong Kong Limited, says Reuters. Facebook currently has an office in Hong Kong, which falls outside of the mainland’s censorship net that prevents Chinese users from accessing Facebook without the use of a VPN.

Speaking to Recode last week, Mark Zuckerberg said that the company had its eye on doing business in China. “I think it’s hard to have a mission of wanting to bring the whole world closer together and leave out the biggest country.”


In 2015 Facebook attempted to open an office in Beijing. It managed to get a business permit but ultimately was unsuccessful under China’s strict censorship laws.