What Does China Receive in Return for $7 Billion in Meta Ads?
In recent years, China has become a significant source of revenue for Meta, the parent company of Facebook, Instagram, and Whatsapp. The tech giant reportedly received around $7 billion worth of ads from China in 2023 alone. This influx of money raises questions about the influence that China may have on Meta’s decision-making processes, particularly regarding its algorithms that determine what users see on their feeds.
Meta’s revenue from the Asia-Pacific region accounts for a whopping 20 percent of its total revenue, a significant portion for a company whose origins lie thousands of miles away in a Harvard dorm room. With such a substantial financial stake in China, it is reasonable to wonder if Meta’s decisions are influenced by the billions it receives from Chinese advertisers.
One concerning aspect is the stark contrast between Meta’s treatment of news reporting and advertising from China. While the company has downgraded news coverage, including reports on China’s human rights abuses, it allows Beijing to flood its platforms with propaganda. A Stanford study conducted in 2022 found that countries that witnessed a surge in views of Facebook advertisements from Chinese state media experienced more positive news coverage about China. The study suggests that these advertisements help Chinese state media shape the news agenda covered by other media sources.
The connection between Meta and China extends beyond advertising revenue. In 2016, Mark Zuckerberg visited China and met with the regime’s propaganda chief. The following year, Meta earned most of its ad money from China, notably from the Chinese Communist Party-controlled propaganda. Subsequently, a research company discovered fake accounts linked to Beijing that were used to promote disinformation about Hong Kong and COVID-19. Although Meta claimed to have removed parts of this operation in August 2023, it persisted over the years with new tactics and accounts.
Meta’s algorithm changes also raise eyebrows. In May, the company accelerated changes to its algorithm, favoring vapid TikTok-style videos over news items. This shift likely benefits the Chinese Communist Party, as its paid “news” advertising is now given priority in user feeds, while actual news from independent media sources dwindles. This change has seemingly “shadow-banned” factual news about China’s human rights issues on Facebook, while Party propaganda takes center stage.
Furthermore, the ads on Facebook contribute to the erosion of the diverse U.S. economy, favoring China’s cheap online mass-marketers. Analysts estimate that in the third quarter of 2023 alone, Facebook and Instagram received approximately $800 million in ad revenue from Chinese brands like Temu and Shein. These brands exploit U.S. tariff loopholes, driving out American businesses, including small mom-and-pop shops on Main Street. The popularity of these Chinese brands is evident from the significant monthly app downloads they receive in the United States.
Interestingly, China’s ad spending may also have consequences for the Chinese Communist Party itself. Meta’s chief financial officer noted that the company’s greatest growth during Q3 2023 was in Latin America and Africa, driven in part by increased demand from Chinese advertisers targeting users in Brazil. This suggests that China may be leveraging its power over Facebook revenues to influence Meta’s actions and potentially punish the company for actions it takes against CCP influence.
Given Meta’s apparent disregard for the CCP’s influence and its profiting from Chinese ad revenue, there is a growing call for action. Voters may pressure their elected representatives to ban CCP ads or advertisements from companies controlled by the CCP due to their potential alignment with Chinese interests rather than American values. Additionally, investigations should be conducted to determine whether Meta’s downgrading of news in its algorithms harms freedom of speech on the platform.
Critics argue that Meta CEO Mark Zuckerberg has amassed immense wealth, much of which comes from a regime known for its totalitarianism and genocide. They believe that Congress should hold him accountable, along with other social media CEOs, particularly those from Chinese-owned platforms like TikTok. This scrutiny should result in legislation that imposes fines on Meta and allocates the penalty towards counter-disinformation initiatives. TikTok, on the other hand, should be banned outright.
While the views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times, they shed light on the potential consequences of China’s influence on Meta’s operations. As discussions surrounding the role of social media platforms in promoting free speech and combatting misinformation continue, it is crucial to examine the impact of large advertising revenues from countries like China on these platforms’ decision-making processes.
