ebaytom.bmpThe New York Times has the story about eBay finally conceding it is shutting its main Web site in China.

Instead, eBay will form a joint venture with a Chinese company:

EBay will take a 49 percent stake in the venture, he said, with Tom Online Inc., an Internet company based in Beijing, taking the majority share and administering the venture, which has yet to be named. The plans call for eBay to put $40 million into the venture and Tom Online to contribute $20 million. Meg Whitman, eBay’s chief executive, is to make the announcement tomorrow at eBay’s office in Shanghai.

Silicon Valley companies Google, Yahoo and eBay have all struggled in China. The NYT has a good summary of the business and cultural mistakes eBay made.