The Chinese government has cracked down on foreign messaging apps, which it says facilitates the communications of terrorists, but at least one outside company is finding a way to make money in China despite having its messenger app blocked in the country.
Despite China's hardline stance on messaging apps, Line, of Japan, has set up a storefront in China for merchandise bearing the likenesses of characters from its messenger app.
China's citizens love Line characters and so the company will continue to monetize it's product by selling Line merchandise, stated a Line manager.
Line's "pop-up" store has spread through Sanlitun Village with advertisements from the messaging company's app, beckoning area residents to spend money on the shop.
Line, South Korea's Kakao Talk and other foreign messenger services were recently blocked due to new restrictions levied by the Chinese government on Aug. 7. The South Korean Ministry indicated that the messaging restriction was likely an effort by the Chinese government to limit the communications of domestic terror groups.
"Some of the messenger services in China that spread information linked to terrorists activities were blocked (by the Chinese authority), including Kakao Talk and Line," the South Korean ministry said. "Many terrorist groups in China reportedly spread information on how to make explosives while engaging in propaganda activities through the messengers and video-sharing websites, as well as cloud computing systems."
China's openness with South Korea on the messaging restrictions was an encouraging sign, suggesting that the Chinese government may continue to release at least some form of explanation for its regulatory moves, according to a Forbes columnist.
"So far Korea hasn't been involved in any such dispute, and Beijing probably wants to avoid yet another conflict with one of its major trading partners," said the columnist. "Whatever the reason, this new decision and the unusual transparency it signifies seems like a small step forward for China, marking a positive move for media companies trying to reduce their risks of doing business in the market."
The Chinese government has generally offered little or no explanation on regulations it has imposed on organizations to protect the country's national security, as it says, and prevent foreign companies from conducting monopolistic practices within the country.
Back on Aug. 8, the Chinese government launched a probe into Toyota's Lexus division on suspicions of monopolistic behaviors. While it wasn't clear what compelled the government to initiate the investigation, survey questions led a Lexus executive to speculate that the Chinese were attempting to ensure that the automaker was offering spare parts at fair prices.
