As new reports emerged late last month that the US social networking website Facebook.com has registered its Chinese domain Facebook.com.cn and may announce its China foray by the end of this year, there is little doubt about its determination.

 

But the second-largest American online community may have to be wary of its Chinese move, as local competitors are ready to give it a fight as serious as they gave Yahoo!, eBay, Google and Myspace.

 

"We don't think Facebook will become our real threat here in China," says Jack Zhang, president and CEO of Zhanzuo.com. "On the contrary, few foreign Internet companies have done a great job in China up to now and we are confident of our future development."

 

Established in April 2006, Zhanzuo.com is regarded as one of the largest social networking websites in China focused on college students - the same users that Facebook is targeting. The website now has 7 million active users and enjoys a good reputation among Chinese students abroad.

 

"As China's economy develops, communication among people become less close," he says. "In the future, we want to make Zhanzuo.com not only as part of people's online life but also part of their daily life."

 

Facebook also has competition from Xiaonei.com, which now claims to have 8 million active users in almost 8,000 colleges and universities in China.

 

Joseph Chen, CEO of Oak Pacific Interactive, the Chinese new media conglomerate that acquired Xiaonei last year, refers to Facebook as a "paper tiger", a famous remark borrowed from Chairman Mao.

 

"Facebook can hardly become a success in China, since social networking websites are culturally oriented, which means a successful business models in the US may not work simply by copying them to China," he says.

 

In fact, Zhang and Chen's remarks reflect the situation that many foreign Internet companies have struggled in the Chinese market although they have achieved great success globally.

 

In 2005, Yahoo! announced it would hand over its Chinese arm to Chinese e-commerce giant Alibaba, putting an end to the company's years of losses in the country. EBay, although entering China through its acquisition of what was then the country's largest auction website EachNet.com, was soon overtaken by Taobao.com.

 

Even Rupert Murdoch was no exception. Since his social networking website Myspace.com began its Chinese version in April, it did not receive the feverish welcome it did in the US.

 

"The development of Myspace in China is disappointing," says Jack Zhang from Zhanzuo.com.

 

As America's largest social networking website, Myspace.com was first originated by band fans enthusiastic about making friends with their favorite band members and other music lovers on the Internet.

 

But such an environment can hardly be found in China, as Chinese Internet users are more willing to download music than make friends on the Web with singers.

 

"In fact, Facebook was first used for US college students to find party partners," says Zhang, who is a Yale MBA graduate. "But in China, parties are simply not as popular."

 

He said that in US colleges, ties among students are much looser than that in China.

 

Despite the criticism from local competitors, Facebook's China entry is underway.

 

Earlier media reports say the company has registered its Chinese domain and it is considering entering the Chinese market through acquiring a local competitor.

 

The reports said Zhanzuo.com received a US$85 million buyout offer from Facebook but turned it down.

 

Zhang refused to comment on the rumors, but an anonymous employee from Zhanzuo.com says the two companies did have talks but failed to clinch an agreement because of a disparity in interests.

 

Insiders guess that Facebook may turn to court Xiaonei.com.

 

"We have a lot of respect for Facebook," says Zhang. "But we are definitely not afraid of them."

 

(China Daily November 12, 2007)