China's Cybersecurity Administration initiates review into more US-listed tech c...

China's Cybersecurity Administration initiates review into more US-listed tech companies- PingWest

China's Cybersecurity Administration initiates review into more US-listed tech companies

July 5, 2021 11:45 am

After alleging the Didi app had a "serious violation" of Cybersecurity Law and delisting it from all app stores, Chinese cyber regulators have opened a security review into three more apps, including Boss Zhipin, Yunmanman, and Huochebang. All apps are owned by companies that recently began trading in the US stock market.

Details

Tencent-backed recruitment platform Boss Zhipin raised $912 million in the IPO on the Nasdaq on June 11.

Freight platform Yunmanman and Huochebang are subsidiaries of Full Truck Alliance, which also went public in the US on June 22.

The Cyberspace Administration of China (CAC) said the probe had been opened to "prevent national data security risks."

During the review, these companies are not allowed to register new users.

Context

Yesterday, ride-hailing app Didi was banned from downloading via China's app stores (including Apple China App Store) just days after its US IPO. The cyber watchdog announced Didi was found to have "seriously violated" China's cybersecurity law by illegally collecting users' data. 

China's internet authorities have been working on setting limits on what kind of user data mobile apps can collect from November 2019 and routinely inspects apps that have "infringed user rights."

Data security and cyber sovereignty are also what China emphsis in recent years. On June 11, Beijing passed a new Data Security Law that regulates how companies collect, store and use data.

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