Chinese authorities have recently ordered the removal vehicle-sharing service Didi Chuxing from app strores. In addition, they’ve launched an investigation into an app run by two Internet companies listed in the U.S. for national security reasons.
According to BBC, China’s CAC announced on the 5th that it has reviewed three apps operated by Nasdaq-listed companies for national security reasons.
Included in the survey was truck-sharing app Full Truck Alliance (FTA), which held IPO sessions on the U.S. stock market last month.
Didi Chuxing, which listed on the NYSE on June 30, was ordered to be removed from China’s app stores as illegal activities were recognized by the Cyberspace Administration of China (CAC), making it inevitable to deal a major blow to management.
CAC said the app has violated the country’s laws and regulations through the improper collection and usage of user information.
The Chinese watchdog also explained on the same day that Full Truck Alliance (FTA) under investigation is under the National Safety Act and the Internet Safety Act, just like Didi Chuxing.
The U.S. Securities and Exchange Commission (SEC) is strengthening its listing rules by requiring Chinese companies listed in the U.S. to audit their related authorities, and China is highly wary of such moves. Therefore, Chinese authorities have encouraged companies seeking to be listed on the U.S. stock market to make IPOs in Shanghai, Shenzhen and Hong Kong.
In addition, Xi Jinping’s leadership is expanding control and checks on Internet giants such as Alibaba, which is expanding its influence.
