China expands investigation of U.S.-listed tech companies after Didi coup – .

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China expands investigation of U.S.-listed tech companies after Didi coup – .


Beijing (AFP)

China on Monday announced inquiries into two other Chinese companies listed in the United States, a day after banning ridesharing giant Didi Chuxing from app stores following its massive IPO in the United States.

The nation’s major internet companies wield massive influence over consumers, but have for nearly a year had their wings cut off in a regulatory crackdown that has derailed IPOs and hit businesses as the government seeks to limit their affecting.

The latest moves have hit the newly listed companies Full Truck Alliance – a merger between the Yunmanman and Huochebang trucking platforms – as well as Kanzhun, which owns the online recruiting platform Boss Zhipin.

All three platforms were ordered to stop registering new users during the investigation period, which aimed to “prevent security risks to national data, protect national security and protect the interest public, ”according to the Chinese Cyberspace Administration.

Hours earlier, the watchdog ordered Didi’s removal from app stores following a similar investigation, putting the brakes on the company’s growth plans after an exceptional IPO in New York last week raised more than $ 4.4 billion.

The administration issued the order to Didi – who has nearly 500 million users and 15 million drivers – after investigations found collecting and using user data a “serious violation” of the regulations.

He also cited national security for action, in an unusual move against a national tech company.

The move was praised by state media, with the Global Times saying in a comment that Didi appeared to have the ability to conduct “big data analysis” on a person’s behavior and habits, posing a potential risk of harm. ‘information.

“We must not allow any giant of the Internet to become a super database of Chinese personal information even more detailed than the state, let alone give them the right to use this data at will,” he said. he declared.

Chinese authorities last year ended a planned $ 34 billion IPO by Alibaba’s financial arm, Ant Group, before launching an anti-monopoly investigation into the tech giant.

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