BUSINESS / ECONOMY
US senators probe Meta’s attempts to enter Chinese market amid decoupling push: experts
Published: Apr 02, 2025 06:11 PM

A US Senate subcommittee has opened an investigation into Meta Platform's past attempts to enter the Chinese market, requesting internal documents from the company, Reuters reported Tuesday. Chinese experts criticized the probe as a politically driven form of trade protectionism that damages US commercial interests and undermines global trade norms.

According to a letter seen by Reuters, US senators questioned Meta CEO Mark Zuckerberg about claims the company once developed censorship tools for Beijing to gain market access in China.

Experts noted that this move reflects US trade protectionism and technological suppression, harming both China-US relations and US corporate interests.

Li Changan, a professor at the University of International Business and Economics, told the Global Times on Wednesday that some US politicians are pressuring American companies to decouple from China, using national security concerns to justify stricter scrutiny. 

These senators are demanding Meta to release all records, including company communications or records of meetings with Chinese officials since 2014, and are requesting this information by April 21, according to the report.

Meta rejected the claims, stating, "These claims are driven by an employee terminated eight years ago for poor performance. We do not operate our services in China today. It is no secret that we were once interested in doing so as part of Facebook's effort to connect the world. Ultimately, we chose not to pursue the ideas we explored, as Mark Zuckerberg announced in 2019." Yet the Senate appears set on continuing the probe.

Li noted that while the US has not outright banned entry into China, its protectionist policies, citing security risks, are holding them back. 

"US' reluctance to allow social media companies into China may stem from concerns over disrupting existing political narratives, despite the potential benefits these companies could gain," he said.

"The US government's approach also infringes on business privacy. Companies have their own trade secrets, considering long-term sustainability and strategic goals," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. "Such actions violate commercial confidentiality, as companies prefer not to reveal them to the public or competitors."

"From another side, the US blocking tech companies from engaging with China is forcing China to build a more complete innovation chain. The US risks missing out on China's massive market, creating friction between American firms and the government," Cong Yi, a professor at the Tianjin School of Administration, told the Global Times on Wednesday.

Cong said that the recent US policies towards China are short-sighted, as the US overlooks China's advanced position in industries like digital economy and AI, where both countries are leaders. Rather than fostering cooperation, the US clings to outdated suppression tactics that hurt its own companies and global standing.

While the US pushes decoupling and unilateralism, China remains focused on expanding its domestic market and maintaining openness, experts say.

"Businesses require stability, not constant changes. China encourages foreign investment, prioritizing both the domestic market and stable international ties," Zhou said, adding that US cooperation with China could help foster a better environment for businesses.

China signaled openness to foreign investment at the recent Boao Forum for Asia and China Development Forum, emphasizing that firms must comply with Chinese regulations.

In February, China released a 2025 action plan to stabilize foreign investment, which was approved by a recent State Council executive meeting. Per the plan, China will support pilot regions in effectively implementing opening-up policies related to such areas as value-added telecommunication, biotechnology and wholly foreign-owned hospitals, providing whole-journey services for foreign-invested projects in these sectors.

China's 2025 government work report promises support for foreign investors to increase their reinvestment in the country, and it will ensure equal treatment for foreign-funded enterprises in fields such as production factor access, license applications, standards setting and government procurement.

By 2024, China had nearly 1.24 million foreign-funded firms, with actual utilized foreign investment amounting to 20.6 trillion yuan ($2.87 trillion). Some 60,000 foreign-invested companies were established in 2024 alone, a 9.9 percent year-on-year increase. The return rate of FDI in China has remained at approximately 9 percent over the past five years, ranking among the highest around the world, Chinese Foreign Ministry spokesperson Mao Ning said at a press conference on March 13.