Facebook is opening an “innovation hub” subsidiary in China in an attempt to break into the massive technological market.
The company, Facebook Technology (Hang Zhou) Ltd., is valued at $30 million and will open in the southern city of Hangzhou, The Washington Post reports.
While Facebook’s apps and website are still blocked through China’s censorship laws, this new company will be centered around startup development, technological services, and investment consulting.
“We are interested in setting up an innovation hub in Zhejiang to support Chinese developers, innovators and start-ups,” a Facebook spokesperson told CNBC. “We have done this in several parts of the world — France, Brazil, India, Korea — and our efforts would be focused on training and workshops that help these developers and entrepreneurs to innovate and grow.”
Facebook was blocked from accessing China in 2009, Bloomberg reports, and has since pursued other methods of tapping the market. They can sell ads to Chinese companies who wish to advertise outside of the country. Last year, Facebook authorized a local company to release a photo-sharing app called “Colorful Balloons in China.”