I don't think any foreign Internet company can effectively compete against Chinese companies in the Chinese market. The regulatory environment is so difficult that it's almost impossible for foreigners to have an advantage over locals who have better political connections and who can manipulate the regulatory system much more effectively.
Facebook is not a physical country, but with 900 million users, its 'population' comes third after China and India. It may not be able to tax or jail its inhabitants, but its executives, programmers, and engineers do exercise a form of governance over people's online activities and identities.
A number of countries, including Russia and China, have put forward proposals to regulate aspects of the Internet like 'crime' and 'security' that are currently unregulated at the global level due to lack of international consensus over what those terms actually mean or over how to balance enforcement with the protection of citizens' rights.