China moved on Saturday to require domestic tech companies to undergo cybersecurity inspections before listing on foreign stock exchanges. This is a step in closing the regulatory gap that allowed the vehicle-calling giant Didi to list its shares on Wall Street last week. Get a clean digital health invoice from Beijing.
China’s Internet regulators on July 2, two days after Diddy’s stock began trading on the New York Stock Exchange I ordered from the company While authorities were conducting security reviews, they suspended user registration and caused stock prices to fall.
Since then, Chinese regulators have I ordered the Didi app from the mobile store He also fined some of the past merger transactions for not giving advance notice and revealed dissatisfaction with the company, which provides a ride-hailing service with 377 million active users annually in China. ..
Data protection has become Beijing’s main focus as China tournaments against the United States for high-tech leadership. Just as U.S. officials sought to ensure that American data were protected from the Communist Party’s snooping eyes, Chinese officials submitted domestic tech companies to the public and obeyed foreigners’ surveillance. Securities regulators want to avoid jeopardizing information about Chinese users when they do.
China’s Internet Regulator, China Cyberspace Administration, Rules for security reviews Last year, as part of a framework for protecting the country’s digital infrastructure.
These regulations did not require companies like Diddy to undergo a formal security check before applying for an initial public offering abroad, but that will change under revision. Proposed by the agency Saturday.
The revised rules require a security review for companies that have information about more than one million users seeking to list their shares abroad. Such companies are required to submit materials related to their IPO, as well as procurement documents and contracts.
Under existing rules, security reviews are aimed at addressing the risks to national security and business continuity posed by servers, software, cloud services, and other products used by major technology companies.
The revised rule adds two more risks to the list. Important data can be “stolen, leaked, damaged, illegally misused or moved abroad” and data can be “affected, controlled and maliciously misused by foreign governments” It is sex. Overseas IPO
The Cyberspace Administration is accepting public comments regarding the revision until July 25th.
China’s top policy makers Shown in the policy document this week It is a question that this document has put together as a national security concern that they will seek to strengthen supervision of companies listed abroad.
For fast-growing Chinese tech companies, the sale of Wall Street shares has long been coveted as an opportunity to reward early employees and funders while winning international investor verification. But Beijing reveals that there is nothing more important than protecting corporate data and digital infrastructure.
After opposition to Diddy, the Cyberspace Administration ordered this week 3 additional internet platforms The two that connect the freight customer and the truck driver and the one for the job offer will suspend user registration and submit it to a security review. Like Didi, the two companies behind these platforms, the Full Truck Alliance and Kanzhun, have recently been launched in the United States.
China plans to check security for technology companies listed overseas
Source link China plans to check security for technology companies listed overseas