Almost without exception, American Internet companies failed in China, with eBay being the post child of such failures. While some of them never come back, the others are coming back, still with eBay being the post child of such returners.

The rumor is whirling that ebay is planning to enter Chinese b2c market via an investments into Xiu.com, a Shenzhen-based luxury site.

In 2003, eBay spent US$ 180 million at EachNet to buy into China’s nascent C2C market, only failed to secure a firm footing here with markets being cannibalized by Alibaba’s Taobao. By 2006, when TOM took over the control of EachNet, eBay signed an agreement with TOM promising no direct competition with Eachnet in five years. Probably one of the reasons why eying the rising of Taobao eBay never did anything to catch up with its apprentice other than just sat there watching.

But eBay by no means wanted to give up Chinese market which is booming and becoming the fastest growing b2c market. Now with the expiration of the restriction, eBay has showed signals of dipping toes into China again. The investments into Xiu.com would establish a mutual cooperation relationship between the two in terms of funding and business operation. Details would be disclosed on 12th this month.

Why investing into xiu.com, never drew on from your experience? Some might criticize on that. Well for your information, Chinese B2C2C market is totally different from what it was back several years ago, there’re more ferocious competition among more rivals equipped with more funding than ever before. Starting from scratch might be the last thing eBay want to and should do if they’re seriously considering coming back.

But not everyone thumbs up on this. An insider revealed that Xiu.com has its own itches, might not be the most ideal platform for eBay’s grand returning scheme. Well, even though acquiring Xiu.com wasn’t the best thing that could’ve been done by eBay, it wouldn’t be the worst.