Facebook has struck a deal with Baidu, the biggest Chinese search engine, to open a jointly-owned social network in China, according to reports in the Chinese press, citing inside sources.

1. More must-see stories
   1. 

      The Hartford Courant, Political
      Wild Wall St.

      Has the market volatility got you nervous? These cartoons may give you a little comic relief.

   2. Cyber-thieves create fake Kelley Blue Book site
   3. US says Reebok toning shoes don't really
   4. Can you live on $9 an hour? Play the game

These sources said the new venture wouldn't involve Facebook.com, which is blocked inside China like many more social networking sites, but a jointly owned, new social networking website. It's unclear when the site could launch: joint ventures need to be approved by the Chinese government and that can take a while, and they have to staff it up with experienced executives that both sides can agree on.

Business Insider: Baidu shoots past $50 billion market cap on Facebook news

There had been reports of this in the Western press but it's the first tangible thing we've seen. Last year Facebook CEO Mark Zuckerberg traveled to China and met with Baidu CEO Robin Li.

Business Insider: Tour Facebook's revolutionary new data center that it’s using to clobber Google

The deal makes sense for both sides. On Facebook's side, it needs a big local partner to break into the huge Chinese market. On Baidu's side, it is threatened by social network juggernaut Tencent, and it might be a safer bet to build a social network with one of the most successful social companies in the world than to try to build its own.

Copyright 2012 by Business Insider, Inc. All rights reserved. Reproduced with permission from Business Insider, Inc.