US backers form big Facebook clone in China

If you’re not reaching, engaging, and monetizing customers on mobile, you’re likely losing them to someone else. Register now for the 8th annual MobileBeat, July 13-14, where the best and brightest will be exploring the latest strategies and tactics in the mobile space.

xiaonei.bmpA giant Chinese Facebook copycat has just been formed, in part by U.S venture backers., the college social networking site that has become one of the biggest players in China, and reminding many of Facebook’s site, has been acquired by Oak Pacific Interactive, which has its own Facebook version, 5Q.

Their goal is to merge to the two Chinese leaders, to create a giant in the market. Notable is that both companies have U.S. backers. Oak Pacific is backed by Silicon Valley venture firm Doll Capital Management, and buyout firm General Atlantic. Xiaonei, which means “on campus,” is backed by angel money in part from an unnamed “ex-CTO of”

There are several other smaller players in the China market.