Facebook is planning to establish an “innovation hub” in China, representing its first formal presence in the country where its website has been blocked for almost a decade.

The New York Times reported that the social media giant has been granted a license by the government to set up an office in the country, based on a filing it has seen.

However, there are indications that there could yet be complications with the move. NYT said that the corporate registration was removed from the Chinese government’s website yesterday (24 July), while references to Facebook’s presence appear to have been censored on local social media.

The filing, before being removed, revealed that Facebook registered in the Chinese city of Hangzhou, with financing for an investment of around $30 million. It will operate as a subsidiary.

Facebook will reportedly use its presence in the country to support Chinese developers, innovators and start-ups. A Facebook spokesperson added that the office would be similar to moves made in France, Brazil, India and Korea.

Charm offensive
Facebook has been blocked in China for almost 10 years, while other western social media platforms such as Twitter and Google services, including video streaming site YouTube, are also inaccessible in the country.   

Facebook CEO Mark Zuckerberg has however long attempted to crack the Chinese market and notably learnt mandarin as part of a charm offensive targeted at Chinese government officials.

In spite of not having a formal presence, Facebook still makes money from China by selling ads to China’s companies and the Chinese government, with the country its largest source of ad revenue in Asia, noted NYT.

Should Facebook proceed with launching its Chinese office, it will also need a separate license from regulators to launch an app and expand its services in the country.

Facebook is also likely to face further scrutiny amid the ongoing row between China and the US.

Even without Facebook and Twitter, China is the world’s biggest social media market, with Chinese users able to access domestic social media such as Weibo, which is subject to government supervision.