What happened: China has not yet granted a business license to any entity operated by Facebook in China, according to Liu Liehong, deputy director of the China Internet Information Office. In July, media reported that Facebook has registered a wholly owned subsidiary in Hangzhou that was to serve as an innovation hub. However, local government bodies halted the approval.
Why it’s important: Similar to Google which has been working quietly to launch a Chinese version of its search engine, Facebook seems to be experiencing some mismatch between its words and actions. Sheryl Sandberg, COO of Facebook said during the US Senate Intelligence Committee hearing that “in order to go into China, we would have to be able to do so in keeping with our values. And that’s not possible right now.” If Facebook was to enter China it would have to place its servers there and comply with strict local regulations.