Chinese regulators send teams to Didi for cybersecurity review

The logo for Chinese ride-hailing company Didi Global Inc is pictured during the IPO on the New York Stock Exchange (NYSE) floor in New York City June 30, 2021. — Reuters pic
The logo for Chinese ride-hailing company Didi Global Inc is pictured during the IPO on the New York Stock Exchange (NYSE) floor in New York City June 30, 2021. — Reuters pic

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BEIJING, July 16 — The Cyberspace Administration of China (CAC) said on Friday that officials from at least seven departments sent on-site teams to conduct a cybersecurity review of ride-hailing giant Didi Global Inc.

The regulators include the CAC, Ministry of Public Security, Ministry of State Security, Ministry of Transport, Ministry of Natural Resources, State Taxation Administration and State Administration for Market Regulation, according to the statement.

CAC did not offer more details in its statement, but the involvement of several government agencies shows the heavier regulatory pressure on the nine-year-old company.

China is in the process of revamping its policy towards privacy and data security. It is drafting a Personal Information Protection Law, which calls for tech platforms to impose stricter measures to ensure secure storage of user data.

In September, China is set to implement its Data Security Law, which requires companies that process “critical data” to conduct risk assessments and submit reports. It also calls on organisations that process data affecting China’s national security to submit to annual reviews.

CAC launched the data-related cybersecurity investigation into Didi just two days after it raised US$4.4 billion (RM18.5 billion) from its New York initial public offering, citing the need to protect national security and the public interest. Regulators also ordered Didi to remove its apps in China which Didi said might hurt its revenue.

Didi, which currently has a market capitalisation of US$60 billion, did not immediately respond to a request for comment on CAC’s new statement. It earlier said it stores all China user and road data in China. — Reuters

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