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1. DIDI LINKDOC IPOTIMES DRIVER
2. DIDI LINKDOC IPOTIMES FULL

DIDI LINKDOC IPOTIMES FULL

The CAC is going after truck-hailing apps Huochebang and Yunmanman, companies under the umbrella of the New York-listed Full Truck Alliance. It’s hard to ignore Beijing’s other actions around the time Didi had its comeuppance. Photo: AFP / Jade Gao 2: It’s best to list at home

DIDI LINKDOC IPOTIMES DRIVER

“Because of this, Beijing will gain further control over Chinese society, while leaving the privacy and security of its citizens and foreign investors vulnerable to exploitation.” A driver using the Didi Chuxing ride-hailing app on his smartphone while driving along the street in Beijing.

Maranto adds that “from the deliberate ambiguity of new cybersecurity and data protection laws, public reports of data leakages and the government’s monitoring of Chinese citizens, it’s clear that China puts a greater emphasis on government access to data than it does on protecting individual and company privacy. “Yet the country’s regulations on data collection often fail to safeguard citizens’ privacy, instead giving the government wide leeway to interpret laws.”

“China’s ambition to be a global leader in technology development, combined with an increasing digital reliance in day-to-day life, means that a heightened focus on data security is crucial for protecting citizens’ information,” Maranto says. The real problem, says Lauren Maranto, China expert at the Center for Strategic and International Studies, a US-based think tank, is the “ambiguous nature” of rules that give Beijing huge scope to curb the tech industry in ways for which investors can’t really prepare for or hedge against.Īnd, in turn, that is confusing Chinese tech companies about where the real red lines are. And it’s raising concerns that investing in Chinese tech is getting riskier by the day. That suddenly has the Cyberspace Administration of China, or CAC, showing teeth investors didn’t see coming. In June, Beijing added new provisions for how internet giants collect, store and utilize data.

Whatever happened at Didi, the rapid rise of China’s cybersecurity regulators looking to demonstrate their power took investors by surprise.Ĭhina’s core cybersecurity laws were implemented between 20. Photo: Facebook 1: The empire strikes back – again Much of the scrutiny prior to last week flowed from President Xi’s crackdown on internet behemoths like Alibaba Group and Tencent Holdings, the latter a big Didi backer.Īs punters struggle to make sense of it all, here are four takeaways worth considering. The surprise investigation – or Didi executives thumbing their noses at Beijing – layered extra uncertainty onto a nine-year-old company already under the spotlight for concerns about anti-competitive tactics and data security. Does this suggest a broader standoff between Big Tech and the authority of President Xi Jinping’s regulators?Įither way, the controversy comes just after Didi pulled off one of the grandest US equity market debuts of the last decade. Why in the world Didi defied Beijing – and think they would get away with it – is the next mystery for investors to mull. A Wall Street Journal report suggested mainland regulators had urged Didi to delay its $4.4 billion IPO, advice that went unheeded. Didi’s stock fell 5% after the news broke.īut some clarity is starting to emerge, suggesting that Didi was not being entirely open in the run-up to its listing. They ordered app stores to stop offering Didi’s platform, alleging it was illegally collecting users’ personal data. Chinese regulators waited until after the listing to announce a probe into China’s answer to Uber on national security grounds. There’s already buzz about class-action lawsuits over the regulatory chaos surrounding last week’s US$68 billion market debut. Will American lawyers end up making bigger profits from Didi Chuxing’s initial public offering (IPO) than investors? That this is even a question only days after the ride-sharing giant listed in New York is both ironic and a terrible look for Chinese tech companies.