China may be looking to buy a sizable stake in Facebook

[zalbard]

Source: http://www.ibtimes.com/

There haven't been any radical political or administrative changes happening in China, recently. Nor have there been any reports that said China is reconsidering its Internet censorhip regulations. The country notorious for jailing bloggers and blocking websites, including Facebook, Twitter and YouTube, is planning to buy a significant chunk of Facebook's stake, according to a BusinessInsider report.

The news source was quoted as saying that Chinese officials approached to seek help from him to help China put together a stake large enough "to matter." According to a second source quoted by BusinessInsider Citibank is working closely to help two sovereign wealth funds - China's and another from the Middle East - to acquire Facebook stocks worth $1.2 billion.

It is being speculated that, if China succeeds in acquiring enough Facebook shares, Facebook users' online privacy will be compromised as Facebook will be forced to divulge user information to the Chinese regime.

However, Facebook being a private company, China needs to get Facebook's approval for buying shares. Nevertheless, since Facebook has always had plans to launch the network in China, it will be hard to guess Facebook's decision on the matter.

Industry watchers say since Facebook is planning for a $100 billion IPO, even a billion dollar stake in Facebook isn't big enough. Since China would be buying non-voting stock, the country would have no say in Facebook's operations. Also, Facebook shareholders don't always get chance to peep into the confidential user data base as per their wish.

O.o
So they want to influence it, but how? Not sure I like the idea, but this is certainly intriguing.

[JaD]

One more reason to switch over to G+.

[Mechromancer]

One more reason to switch over to G+.

You read my mind. G+ FTMFW! Google wouldn't sell out to the Chinese government (maybe the US Gov't but not the Chinese).

[biohead]

You read my mind. G+ FTMFW! Google wouldn't sell out to the Chinese government (maybe the US Gov't but not the Chinese).

isn't that undermining your argument a little?

[Hondacity]

who got the mooolah nao!

[Cooper]

Maybe that's one of the few US based businesses worth investing in left ?

[zanzabar]

One more reason to switch over to G+.

so, china may get into my personal data: hence i will go with the site that makes money by selling my unique data to advertising companies and governments

[paulbagz]

Oh hell no...

-PB

[trn]

I call BS on this story... I don't buy it at all. And if it is true I would guess that a government fund wants to buy stake in FB only to cash in on an IPO not for any control issues as mentioned in this article.

First of all, China has no need for Facebook. They have their own domestic knock-off called QQ. QQ is as popular as FB is in the rest of the world inside of mainland China, QQ even has its own knock-off versions of farmville which are also hugely popular So why would they even need to open up FB in mainland?

IMHO the number 1 reason why China banned FB, (and threatens to ban google.) is not for control but it is to unfairly promote domestic Chinese products. They apply this same strategy to most other industries, the automotive industry being a good example. China has a 100% importation duty on any car not made 100% in China. To buy a BMW that would cost $50,000 in the rest of the world it will cost over $100,000 in mainland China. The reason... economy, they want to have their own auto industry and all the jobs it supports and the money it brings. But their cars suck (although not as bad as they used to, because of this unfair duty) so the local car companies could not compete with the foregin car companies. Now all that money and jobs that purchasing cars in china (now the largest market I think) would leave the country and go to others. That's what the Chinese government can't stand. Now if an automotive company like GM sets up an assembly plant in Shanghai and sets up a join venture with the government and buys all the parts for their cars in China from domestic suppliers then there is no duty because the money and jobs stay in China. They apply this same double strategy to most industries; they want to import as little as possible while exporting as much as possible. There has been a trade and currency war going between China and the US and EU for over 10 years on this issue and the artificial pegging of the RMB to the dollar. This hardly makes the news because its not very interesting, but that's the truth of the matter. Why make a bunch of Americans rich when you can just block their ip's, let a domestic company knock-off their product and then all the money stays inside China.

[[XC] gomeler]

I call BS on this story... I don't buy it at all. And if it is true I would guess that a government fund wants to buy stake in FB only to cash in on an IPO not for any control issues as mentioned in this article.

First of all, China has no need for Facebook. They have their own domestic knock-off called QQ. QQ is as popular as FB is in the rest of the world inside of mainland China, QQ even has its own knock-off versions of farmville which are also hugely popular So why would they even need to open up FB in mainland?

IMHO the number 1 reason why China banned FB, (and threatens to ban google.) is not for control but it is to unfairly promote domestic Chinese products. They apply this same strategy to most other industries, the automotive industry being a good example. China has a 100% importation duty on any car not made 100% in China. To buy a BMW that would cost $50,000 in the rest of the world it will cost over $100,000 in mainland China. The reason... economy, they want to have their own auto industry and all the jobs it supports and the money it brings. But their cars suck (although not as bad as they used to, because of this unfair duty) so the local car companies could not compete with the foregin car companies. Now all that money and jobs that purchasing cars in china (now the largest market I think) would leave the country and go to others. That's what the Chinese government can't stand. Now if an automotive company like GM sets up an assembly plant in Shanghai and sets up a join venture with the government and buys all the parts for their cars in China from domestic suppliers then there is no duty because the money and jobs stay in China. They apply this same double strategy to most industries; they want to import as little as possible while exporting as much as possible. There has been a trade and currency war going between China and the US and EU for over 10 years on this issue and the artificial pegging of the RMB to the dollar. This hardly makes the news because its not very interesting, but that's the truth of the matter. Why make a bunch of Americans rich when you can just block their ip's, let a domestic company knock-off their product and then all the money stays inside China.

I agree. I think people might just now be waking up and noticing how China has been playing everyone else.

[Caparroz]

I welcome the idea. Maybe we'll get rid of this retarded plague in the end...

[lizardmech]

I call BS on this story... I don't buy it at all. And if it is true I would guess that a government fund wants to buy stake in FB only to cash in on an IPO not for any control issues as mentioned in this article.

First of all, China has no need for Facebook. They have their own domestic knock-off called QQ. QQ is as popular as FB is in the rest of the world inside of mainland China, QQ even has its own knock-off versions of farmville which are also hugely popular So why would they even need to open up FB in mainland?

IMHO the number 1 reason why China banned FB, (and threatens to ban google.) is not for control but it is to unfairly promote domestic Chinese products. They apply this same strategy to most other industries, the automotive industry being a good example. China has a 100% importation duty on any car not made 100% in China. To buy a BMW that would cost $50,000 in the rest of the world it will cost over $100,000 in mainland China. The reason... economy, they want to have their own auto industry and all the jobs it supports and the money it brings. But their cars suck (although not as bad as they used to, because of this unfair duty) so the local car companies could not compete with the foregin car companies. Now all that money and jobs that purchasing cars in china (now the largest market I think) would leave the country and go to others. That's what the Chinese government can't stand. Now if an automotive company like GM sets up an assembly plant in Shanghai and sets up a join venture with the government and buys all the parts for their cars in China from domestic suppliers then there is no duty because the money and jobs stay in China. They apply this same double strategy to most industries; they want to import as little as possible while exporting as much as possible. There has been a trade and currency war going between China and the US and EU for over 10 years on this issue and the artificial pegging of the RMB to the dollar. This hardly makes the news because its not very interesting, but that's the truth of the matter. Why make a bunch of Americans rich when you can just block their ip's, let a domestic company knock-off their product and then all the money stays inside China.

This isn't much different to how the USA frequently treats foreign trade, there's considerable protectionism in certain industries. American companies also like to price gouge foreigners when licensing any IP, just look at the price of software and anything related to the entertainment industry outside of America. Then you have the constant patent trolling which makes it more difficult for foreign companies to sell products. I don't think it's completely fair to categorize either side as completely good or bad.

China buying a considerable chunk of facebook would be pretty amusing, I don't think facebook would have to change much, they both seem to have a similar view of censorship and anonymity.

[Mech0z]

(maybe the US Gov't but not the Chinese).

And why would that be any better?

[zalbard]

IMHO the number 1 reason why China banned FB, (and threatens to ban google.) is not for control but it is to unfairly promote domestic Chinese products.

Edit: looks like only people who use encrypted connections can access FB from China - my bad.

[aintz]

that would be the dumbest investment ever.

[nn_step]

A sign that regardless of what company that you put your trust into, it will be violated eventually as surely as the sun will rise tomorrow.

[duron]

...does this mean I can now use FB here in China?

it's sad for us here not having to connect to friends & families since many of this so-called interweb programs are banned here. I remember when FB was still new it was ok here but a few groups used it as a means to organize rallies that's why such is no longer available - freely.

[gumballguy]

One more reason to switch over to G+.

Whats stopping them from changing the way they do things?

For example:

http://www.google.com/support/profil...public_profile