Facebook needs China, but China does not need Facebook - Ben Cavender

Ben Cavender

Facebook's bumpy relationship with China got another hit as the companies lead manager, Wang-Li Moser, in charge of government relations, decided last week to return to the US for "personal reasons". Business analyst Ben Cavender explains why China does not really need Facebook, in the Wall Street Journal.

The Wall Street Journal:

Ms. Moser couldn't be reached for comment. Her exit was first reported by the New York Times. 

Analysts say the loss of Ms. Moser only adds to Facebook's challenges in re-entering China, where it has been blocked since 2009, reflecting the government's concern over the ability of large social networks to stir unrest. 

Even if it could regain entry -- and most analysts say that is unlikely -- Facebook also faces a challenge in taking on WeChat, the dominant social media app, run by Tencent Holdings Ltd. 

"Looking at the environment now, it will be very difficult for foreign firms in the social media space to make headway into China," said Ben Cavender, principal at China Market Research Group. "The government has firm censorship rules and they have strong local players -- there's no need for them to open the door so wide anymore."

More in the Wall Street Journal.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on managing your China risks? Do check out this list.