(Reuters) – The Chinese government has withdrawn its approval for Facebook Inc’s plan to open a venture in the eastern province of Zhejiang, the…
(Reuters) – The Chinese government has withdrawn its approval for Facebook Inc’s plan to open a venture in the eastern province of Zhejiang, the New York Times reported on Wednesday, citing a person familiar with the matter.
Facebook said on Tuesday it planned to create an « innovation hub » to support local start-ups.
The subsidiary was registered in Hangzhou, according to a filing approved on China’s National Enterprise Credit Information Publicity System last week and seen by Reuters on Tuesday.
A Chinese government database showed that Facebook had gained approval to open a subsidiary. The registration has since disappeared, according to checks made by Reuters.
Facebook could not be immediately reached for comment.
Shares of Facebook pared most of their gains to trade marginally up at $215.34, after touching a record-high earlier in the session. The company is due to report quarterly results after the closing bell.
The decision to take down the approval came after a disagreement between officials in Zhejiang and the national internet regulator, the Cyberspace Administration of China, which was angry that it had not been consulted more closely, according https://www.
