China extends probes of US-listed tech groups after curbs on Didi
Written by tokyoclub on July 7, 2021
China’s cyberspace regulator deepened turmoil in the country’s tech sector on Monday by announcing national security-related reviews of two more companies that recently listed in the U.S., a day after unveiling curbs on ride-hailer Didi Global in the wake of its $4.3 billion New York IPO.
The Cyberspace Administration of China said it was looking into Huochebang and Yunmanman, which are owned by Full Truck Alliance, and Boss Zhipin, a recruitment site owned by Kanzhun.
Kanzhun, which raised $912 million, listed in the U.S. in June. Full Truck Alliance, colloquially referred to as China’s “Uber for trucks,” also listed in the U.S. last month after taking in $1.6 billion.
The CAC said the reviews were “to prevent national data security risks, maintain national security and protect the public interest.” It said all the companies had to stop registering new users while the reviews took place.
The moves extend a crackdown by the CAC, which on Sunday ordered Didi to remove its app from app stores, accusing the company of serious violations of laws on collecting and using personal data.
The move casts a shadow over Didi, which listed in the U.S. on June 30 and is heavily dependent on China for its profits, and is likely to raise concerns over more regulatory action against U.S.-listed companies.