House-sharing company Airbnb announced that it is spinning off its China unit into an autonomous business. The company claims that it is enjoying booming popularity among Chinese travelers.

Airbnb also said that the new entity would handle the data of its China-centric listings and bookings. The company has also revised its terms of service. The new policies will be effective from December 7.

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Airbnb is likely to have made the changes to comply with local rules and regulations. In an email to its Chinese users, the company said that their personal data will now be transferred to Airbnb China. The same entity will also be responsible for storing, using and processing the data. Late last month, the company announced the launch of its separate China unit.

The new changes to Airbnb policies also state that going forward, disputes will be dealt with the under the China International Economic and Trade Arbitration Commission's jurisdiction.

Airbnb has served more than 3.5 million Chinese travelers. China is one of the fastest growing outbound markets in the world, increasing its attractiveness to foreign companies. Airbnb is also seeing marked increase in the number of its hosts in China.

The US company seems to be enjoying success in cracking the Chinese market. However, it is facing stiff competition as well. Domestic home-sharing company Tujia is believed to have 420,000 listings as of July this year. Mayi, with 300,000 listings, is another major competitor. To overcome these challenges, Airbnb recently announced its collaborations in major Chinese cities such as Shanghai and Shenzhen.

TagsAirbnb, china, Tujia, Mayi