U.S. social networking giant Facebook has reportedly signed a lease for office space in Beijing, even though the website has been blocked in the country for at least five years.
The office at Fortune Financial Center in Chaoyang district comprises 800 square meters, according to local media reports. In China, acquiring an office lease is a mandatory first step in acquiring an operating business license.
But it is still unknown what type of corporate entity Facebook will eventually create, or if it will forge a variable interest equity entity relationship with a local Chinese firm. Facebook relies on advertising for much of its global revenue, but Facebook can not acquire an advertising license in China. It must most likely work with a local Chinese advertising firm instead.
Though the site is blocked in China and realistically will not be unblocked any time soon, the company is courting app developers in China.