Business license for Facebook Inc’s Hangzhou office still pending: official

cense to Facebook China has not granted Inc, which a business will re- liportedly set up a local subsidiary in Hangzhou, capital of East China’s Zhejiang Province, Liu Liehong, deputy director of the China Internet Information Office, said at a press conference on Friday. Media reports said that Facebook registered a subsidiary in Hangzhou but local authorities later revoked the approval, leading the company to halt a plan to set up its first office in the Chinese mainland. Facebook has contacted authorities in Hangzhou, but local authorities have not issued a business license to the US- based firm, the official said.

Liu Dingding, an independent technology analyst, said that international online giants like Facebook and Google have repeatedly sent friendly signals to the Chinese market, showing not only their interest but their determination to bring their business into the market, where internet usage is already widely popular.

“But they have to comply with domestic cyber laws in order to bring their social network businesses into the mainland,” the analyst said.

Another factor that restricts Facebook’s entry into the mainland is that its servers are mostly based in the US and it would also be hard for China to put it under proper management, he said.

In response to questions as to whether foreign companies like Google and Facebook cannot develop businesses in the non-social networking and non-search engine sectors in the mainland, the official stressed that “China is willing to share business opportunities in its internet development with the world.”

“As long as foreign companies follow China’s rules and regulations, carry out the management requirements of relevant departments and respect China’s history and culture, we welcome them to develop in China,” Liu said.

Liu Dingding said Facebook and other overseas social network giants bring a part of their businesses first into the mainland before making any bigger plans targeting the domestic markets.