Facebook Sales Office at China to Face Legal Complexities

Facebook Inc is planning its operations in China with a new sales office to coordinate with the local market for advertising. For the first time, FB officials will be working at China if the operation is approved.

As per a source, FB would establish their office in China within a year so as to provide service to the soaring potential local customers. Facebook is looking forward to set up its office at a leased space at Fortune Financial Center at Beijing’s central business district. As per a source, it has not been decided whether the sales office will be outsourced to any contractor or engaged with full time employees that require prior operating license.

Facebook sales office in China would be a significant venture as the country has proved itself as one of the largest and potential markets across the globe and is yet to be tapped by Facebook. In 2009, Facebook applications were banned by Chinese government, but the company ran an office in Hong Kong and provided service to national customers who showed interest to get in touch with the international users.

As per Facebook’s VP, Mr. Vaughan Smith, the team at Hong Kong is facilitating the local business houses through FB platform and looking forward to expand so as to give better support to the local customers; therefore setting up a sales office would be a wiser step. But the timings and location about the China office is not yet emphasized by the VP.

China Hindrances

 China has always been a difficult market for the US; companies like Yahoo Inc and Ebay Inc are still struggling to engulf the market. In 2010, Google denied the local online censorship policies and closed the local search page. Recently, LinkedIn showed interest to expand in China and ensured to launch Chinese website intact with the censorship policies.

As per a statement by Director of Markey Research Group at Shanghai, the market is still unstable and it’s difficult to see Facebook in the near future.

Meandering Path

The local web companies have flourished in the absence of US media firms in China; recently Sina Corp, which is a local company similar to Twitter, has grabbed 129 million users and also went public in US last month. Facebook declared its manifesto in the 2012 IPO and said that due to some legal complications it was unable to tap the Chinese market, which is the land of internet users. “However there are enormous FB developers working from China,” said Mr. Smith at the Global mobile internet conference in Beijing on May 6th.

Asia is the productive sector for FB as it earns about 14% of its revenue from here. In September, Sheryl Sandberg, the Chief Operating Officer of Facebook met with the government official Cai Mingzhao associated with overseas internet controls in China and discussed about the roles and responsibilities of Facebook in expanding the national business at an international level.