MENLO PARK, CA - FEBRUARY 08: A chainlink fence surrounds the former Sun Microsystems campus on February 8, 2011 in Menlo Park, California. Facebook announced today that it will move its headquarters from Palo Alto to Menlo Park and take over the former Sun Microsystems campus that consists of 57 acres, nine buildings and about one million square feet. (Photo by Justin Sullivan/Getty Images)
The move puts Facebook at China's doorstep, where the social network has been banned in the mainland for almost two years.
China's 450 million Internet users and its expanding mobile market is seen as a prime target for Facebook's future expansion.
Facebook has said its biggest resolution for the new year is to expand its product on mobile devices. The company started by launching an app for feature phones.
The company's CEO was in China in December with his girlfriend, who is Chinese American, and met with several Chinese Internet companies.