Meta AI Reveals Source of Facebook's China Revenue, Admits Fraudulent Ad Income
Meta's AI has disclosed that despite Facebook being blocked in China, the company generates significant revenue from Chinese advertisers. While major e-commerce firms like Temu and Shein are key clients, internal documents suggest 10% of revenue comes from fraudulent or prohibited ads. The dissolution of anti-fraud teams due to profit concerns highlights the tension between Meta's corporate mission and its pursuit of revenue.
📋 Article Processing Timeline
- 📰 Published: June 1, 2026 at 11:32
- 🔍 Collected: June 1, 2026 at 11:52 (20 min after Published)
- 🤖 AI Analyzed: June 1, 2026 at 11:58 (5 min after Collected)
Meta's social platform, Threads, has recently been testing Meta AI integration in Taiwan, allowing users to receive real-time AI responses by tagging @meta.ai in posts or replies. When a user asked Meta AI why Facebook is inaccessible in China yet Meta still generates revenue from the country, the AI not only revealed how Chinese advertisers place ads but also admitted that a portion of Meta's revenue comes from fraudulent and non-compliant advertisements.
Below is a summary of Meta AI's responses to user inquiries regarding Meta's revenue from China:
Meta AI: Facebook is blocked in China and cannot be used, but Meta's revenue comes from Chinese advertisers, primarily cross-border e-commerce companies like Temu and Shein, as well as gaming companies, purchasing ads on Facebook and Instagram.
Meta's financial reports show that in 2024, revenue from China reached $18.35 billion, accounting for over 11% of total revenue, making it the second-largest market after the United States.
Meta AI: Just because Facebook cannot be used does not mean Chinese companies cannot buy Facebook ads.
Although users within China cannot browse Facebook, businesses can apply for a "Meta Business Suite" account to log in directly and place ads targeting overseas users. Chinese advertisers place orders directly through Meta's ad backend, targeting users outside of China, such as those in Europe, the Americas, and Southeast Asia.
Meta AI: It is mainly Chinese companies "going global" to place ads; the target is overseas users, not the Chinese public.
In 2023, Chinese advertisers spent approximately $13.5 billion on Meta, accounting for 10% of Meta's total revenue. Meta's financial reports also indicate that this revenue primarily comes from high spending by Chinese advertisers on AI-recommended video content and other formats.
However, reports indicate that some Chinese ads involve fraudulent, illegal gambling, and other non-compliant content. Meta previously formed an anti-fraud team that reduced the proportion of non-compliant ads from 19% to 9%, but the team was later disbanded, and the proportion of non-compliant ads rose back to 16% in 2025.
Meta AI: Temu, Shein, and other Chinese cross-border e-commerce companies relied on Facebook and Instagram to advertise in overseas markets, and their return on investment was once very strong. After the U.S. implemented tariff policies in 2025, Temu slashed its advertising budget, causing Meta's stock to drop temporarily, but subsequent ad revenue still saw a steady growth of 26%.
Meta's internal documents show that about 10% of annual revenue in 2024—approximately $16 billion—came from fraudulent and prohibited ads. Among these, high-risk fraudulent ads generate about 15 billion impressions daily, and Meta estimates it earns $7 billion annually from such ads. Another report points out that out of $18 billion in Chinese ad revenue, about 19% (over $3 billion) comes from illegal content such as fraud, gambling, and pornography. Meta responded that the actual percentage is lower but acknowledged that the platform is involved in one-third of fraud cases in the United States.
Meta AI: It is mainly a matter of cost considerations and revenue trade-offs. Meta's internal documents show that in 2024, fraudulent and prohibited ads accounted for about 10% of revenue, or about $16 billion, with high-risk fraudulent ads alone earning $7 billion a year.
Therefore, the anti-fraud team was restricted, and revenue losses caused by anti-fraud actions were not allowed to exceed 0.15% (about $135 million), otherwise, it would affect ad revenue performance. Consequently, the team was disbanded, and anti-fraud efforts were tightened.
Meta AI: No, Meta has not been fined in China or Hong Kong due to fraudulent ads. Chinese users cannot use Facebook, and Meta has no operations in China.
However, internal documents obtained by Reuters show that China is the largest source of fraudulent ads for Meta. In 2024, Chinese ads contributed about $18.4 billion to Meta's revenue, with high-risk fraudulent ads estimated to account for 19%. Meta responded that it has removed 46 million China-related non-compliant ads and terminated cooperation with some non-compliant agencies.
Meta AI: There is some deviation, but it cannot be said that it is completely contrary. Mark Zuckerberg's philosophy when creating Facebook in 2004 was to make the world more open; in 2017, it was changed to giving people the power to build community and bring the world closer together.
But now, revenue pressure is indeed affecting governance decisions. Just like the aforementioned anti-fraud actions affecting ad revenue, which ultimately led to the disbanding of the anti-fraud team and the resurgence of non-compliant ads.
So the reality is that Meta is still making products for connection and community, but when safety governance and ad revenue conflict, the weight of revenue becomes higher. This is a tug-of-war between philosophy and business; it is not a complete reversal, but the priorities have changed.
Below is a summary of Meta AI's responses to user inquiries regarding Meta's revenue from China:
Meta AI: Facebook is blocked in China and cannot be used, but Meta's revenue comes from Chinese advertisers, primarily cross-border e-commerce companies like Temu and Shein, as well as gaming companies, purchasing ads on Facebook and Instagram.
Meta's financial reports show that in 2024, revenue from China reached $18.35 billion, accounting for over 11% of total revenue, making it the second-largest market after the United States.
Meta AI: Just because Facebook cannot be used does not mean Chinese companies cannot buy Facebook ads.
Although users within China cannot browse Facebook, businesses can apply for a "Meta Business Suite" account to log in directly and place ads targeting overseas users. Chinese advertisers place orders directly through Meta's ad backend, targeting users outside of China, such as those in Europe, the Americas, and Southeast Asia.
Meta AI: It is mainly Chinese companies "going global" to place ads; the target is overseas users, not the Chinese public.
In 2023, Chinese advertisers spent approximately $13.5 billion on Meta, accounting for 10% of Meta's total revenue. Meta's financial reports also indicate that this revenue primarily comes from high spending by Chinese advertisers on AI-recommended video content and other formats.
However, reports indicate that some Chinese ads involve fraudulent, illegal gambling, and other non-compliant content. Meta previously formed an anti-fraud team that reduced the proportion of non-compliant ads from 19% to 9%, but the team was later disbanded, and the proportion of non-compliant ads rose back to 16% in 2025.
Meta AI: Temu, Shein, and other Chinese cross-border e-commerce companies relied on Facebook and Instagram to advertise in overseas markets, and their return on investment was once very strong. After the U.S. implemented tariff policies in 2025, Temu slashed its advertising budget, causing Meta's stock to drop temporarily, but subsequent ad revenue still saw a steady growth of 26%.
Meta's internal documents show that about 10% of annual revenue in 2024—approximately $16 billion—came from fraudulent and prohibited ads. Among these, high-risk fraudulent ads generate about 15 billion impressions daily, and Meta estimates it earns $7 billion annually from such ads. Another report points out that out of $18 billion in Chinese ad revenue, about 19% (over $3 billion) comes from illegal content such as fraud, gambling, and pornography. Meta responded that the actual percentage is lower but acknowledged that the platform is involved in one-third of fraud cases in the United States.
Meta AI: It is mainly a matter of cost considerations and revenue trade-offs. Meta's internal documents show that in 2024, fraudulent and prohibited ads accounted for about 10% of revenue, or about $16 billion, with high-risk fraudulent ads alone earning $7 billion a year.
Therefore, the anti-fraud team was restricted, and revenue losses caused by anti-fraud actions were not allowed to exceed 0.15% (about $135 million), otherwise, it would affect ad revenue performance. Consequently, the team was disbanded, and anti-fraud efforts were tightened.
Meta AI: No, Meta has not been fined in China or Hong Kong due to fraudulent ads. Chinese users cannot use Facebook, and Meta has no operations in China.
However, internal documents obtained by Reuters show that China is the largest source of fraudulent ads for Meta. In 2024, Chinese ads contributed about $18.4 billion to Meta's revenue, with high-risk fraudulent ads estimated to account for 19%. Meta responded that it has removed 46 million China-related non-compliant ads and terminated cooperation with some non-compliant agencies.
Meta AI: There is some deviation, but it cannot be said that it is completely contrary. Mark Zuckerberg's philosophy when creating Facebook in 2004 was to make the world more open; in 2017, it was changed to giving people the power to build community and bring the world closer together.
But now, revenue pressure is indeed affecting governance decisions. Just like the aforementioned anti-fraud actions affecting ad revenue, which ultimately led to the disbanding of the anti-fraud team and the resurgence of non-compliant ads.
So the reality is that Meta is still making products for connection and community, but when safety governance and ad revenue conflict, the weight of revenue becomes higher. This is a tug-of-war between philosophy and business; it is not a complete reversal, but the priorities have changed.
FAQ
How does this impact Meta's reputation in Taiwan?
It raises concerns among Taiwanese users about the prevalence of fraudulent ads on platforms they use daily.