Collaboration with more US firms
China’s Tsinghua Holdings, a state-owned tech group of Tsinghua University, is in talks with Facebook (FB) and Google to form partnerships, according to a report from the Wall Street Journal. With a strong position in the political realms of China (FXI), Tsinghua Holdings could open doors for Facebook and other US companies that are currently banned from operating in China.
In addition to Facebook and Google, Tsinghua Holdings is trying to buy Micron Technology (MU), the leading chipmaker in the US. If finalized, the deal would be the largest international acquisition by a foreign company.
Chinese users on Facebook
Mark Zuckerberg, the chairman and CEO of Facebook, aims to reach out to the Chinese audience via Internet.org. He believes this partnership could help Facebook reach out to the population in China lacking an Internet connection.
According to a recent report from the China Internet Network Information Center, less than half of China’s population currently has Internet access. This demonstrates that Facebook can tap the remaining population, presenting a growth opportunity for Facebook.