Airbnb continues rapid Chinese expansion
Airbnb has ramped up operations in China, beginning with the creation of a business entity specifically to handle Chinese bookings and listings. This is part of the rapid expansion of the sharing economy in China, which is projected to account for 10% of GDP by 2020. Despite this, Airbnb currently remains in something of regulatory limbo in China. Under local laws, private residences are not allowed to be used for commercial purposes, such as running a hotel. However, it’s debatable whether a short-term rental is the same as a hotel, and whether the two ought to be regulated similarly.

(Beijing) —Airbnb Inc., the accommodation-sharing business leader, is gearing up for an expansion in China, one of the world's fastest-growing travel markets, even as it fights hostile regulators at home in the U.S.

The San Francisco-based company, which operates an online platform for linking homeowners with travelers for short-term rentals, announced major changes to its Chinese operations in late October. They included creation of a new business entity, Airbnb China, to handle China-based bookings and listings beginning Dec. 7.