Business & Economy

Chinese tech firms need permission to go public overseas

Beijing, July 10 (EFE).- The Cyberspace Administration of China Saturday said technology companies with data of more than one million users would have to report to the regulator before going public overseas.

The amendment to the cybersecurity measures is directed at “key information infrastructure operators” and is still open to suggestions and changes.

In article 5 of the draft, these companies will have to foresee the possible risks that their products may pose to national security after put into use.

The draft of the new cybersecurity measures asks firms to consider the risk of data being stolen, leaked, destroyed, and illegally used or taken out of the country and users’ personal information being controlled or used maliciously by foreign governments after Chinese companies’ IPOs outside China.

The announcement comes days after China launched a probe into big tech companies, including Didi Chuxing, known as the “Uber of China,” which made its debut on the New York Stock Exchange last week, for alleged risks to the security of user data.

The government ordered the withdrawal of Didi’s application from app stores in the country.

The news of the suspension of its app’s downloads caused Didi’s shares to crash on Tuesday, shedding more than 20 percent at the start of trading.

This week, the authorities began investigating the online recruitment portal Boss Zhipin and truck ?hailing companies, Yunmanman and Huochebang, citing national security risks. EFE


Related Articles

Back to top button