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Airbnb Inc.’s Chinese rival Tujia announced Wednesday it will be partnering with e-commerce giant Rakuten Inc. to expand its business in Japan following the government’s recent passage of a law giving the green light to private short-term minpaku lodging services.

Citing the large number of tourists traveling to Japan, Tujia Chief Operating Officer Yang Changle said the company is confident it can boost its presence here by focusing on serving Chinese visitors via its experience and strong name recognition back home.

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