> blocking so many foreign sites has enabled a flourishing of domestic internet companies of the likes that nobody but the US has seen
I'm not sure I follow. It's not like there's a huge demand to do business with local Chinese nationals. There's opportunity, sure, there's always opportunity, but don't confuse that with demand. Unfortunately, very few businesses outside of China could even compete with domestic companies anyways. They're literally working for pennies on the dollar. That's also ignoring the cultural and language barriers, not to mention governmental red-tape you would have to go through.
It would be like me trying to set up an customer service business here in Maine and trying to sell my services to a lower-middle sized company in India. I wouldn't be able to compete with local Indian companies since their overhead and costs are significantly less than mine. Obviously there are exceptions depending on the industry, but they are just that, exceptions.
Facebook wouldn't incur any additional costs operating in China except for the cost of additional server infrastructure, which would be the same for a Chinese company. Their engineering costs are sunk costs. They wouldn't be competing against Chinese engineers for pennies on the dollar (if you could even find Chinese engineers of the same skill set).
I'm not sure I follow. It's not like there's a huge demand to do business with local Chinese nationals. There's opportunity, sure, there's always opportunity, but don't confuse that with demand. Unfortunately, very few businesses outside of China could even compete with domestic companies anyways. They're literally working for pennies on the dollar. That's also ignoring the cultural and language barriers, not to mention governmental red-tape you would have to go through.
It would be like me trying to set up an customer service business here in Maine and trying to sell my services to a lower-middle sized company in India. I wouldn't be able to compete with local Indian companies since their overhead and costs are significantly less than mine. Obviously there are exceptions depending on the industry, but they are just that, exceptions.