China’s Big Tech Under New Cybersecurity Oversight

China’s Ministry of Technology has announced a three-year action plan to expand the country’s cybersecurity industry, expected to be worth more than $38 billion by 2023, according to Reuters.

The new strategy by the Ministry of Industry and Information Technology comes as China tightens control over the country’s technology industry, as demonstrated by a regulatory investigation into a ride-hailing company. Didi Global.

Following an initial public offering, or initial public offering, on the New York Stock Exchange on June 30, the business was valued at $68 billion.

However, Chinese officials have begun a cybersecurity review of the company and say new customers will be barred from registering during the investigation. The Cyberspace Administration of China later ordered Didi’s app to be withdrawn from mobile app stores in the country.

In addition, the agency ordered two other tech-based companies, Uber-like trucking startups Full Truck Alliance, and Kanzhun, which connects job seekers with recruitment agencies. via the mobile app, unsubscribe the user and subject to a security check, citing risks for “national data security”.

The initial public offering was a huge success for Didi Global, which beat Uber in the Chinese market to become the country’s ride-hailing king.

It raised $4.4 billion out of biggest public launch for a Chinese business on the world’s leading capital market this year.

However, the excitement was short-lived.

Two days later, the authorities revealed the cybersecurity investigation against Didi Global, sending the company’s stock price down.

“China takes data very seriously because Chairman File believes that there is no national security without data security,” said Henry Gao, an associate professor of law at Singapore Management University. told the South China Morning Post.

“The emphasis is on making sure that ‘critical data’ doesn’t fall into the wrong hands, which is why Didi is under investigation in the current case.”

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