A potentially lucrative investment by Facebook in Xiaomi, China’s biggest smartphones maker, failed to get off the start line amid concerns over the social media giant’s political status in China.

Facebook boss Mark Zuckerberg dined with Xiaomi chief executive Lei Jun in October ahead of the latter’s $1.1 billion (£726 million) fundraising round last month, but a deal never materialised, Reuters reported.

Lei was reportedly put off by the potential political fallout from a stake sale to Facebook, which has been widely banned in China since 2009.

He also feared the impact on its relationship with Google as Xiaomi’s phones are built on Google’s Android operating system.

The proposed small investment would have offered Facebook a way in to the world’s most populous country, something Zuckerberg has long prized.

It would also have created another distribution channel for Facebook's apps, as well as provided a powerful ally in its bid to overturn its China ban, Reuters said.

Xiaomi, which only ranks behind Apple and Samsung in China and is worth around £29 billion, last year doubled its turnover to 74.3 billion yuan (£7.9 billion).