Beijing’s crackdown on Hi-Tech giants who want to be listed abroad

by time news

Time.news – China intensifies its crackdown on technology giants who intend to go public abroadmaking it more difficult to approve IPOs and raise funds in the United States. The new rules were published today by the Cyberspace Admnistration of China, the state supervisory body on the internet, and strengthen the supervision of the tech giants that have data of at least one million users, a very low threshold in a country that touches one billion. of people surfing the internet (989 million at the last count).

According to the national cybersecurity review mechanism at the heart of the draft law, which consists of 23 articles, “any operator who has personal information of more than one million users and who is quoted abroad must undergo an audit. of IT security “.

The review of IT security, reads the text of the new rules, will focus on the assessment of national security risks that can be caused by procurement and data processing activities. In particular, some aspects will be examined, including the risks of illegal data control or interference in their management, compliance with Chinese laws, the risk of theft, disclosure or destruction of fundamental data and the risk that the IT infrastructure and data can be “attacked, controlled or used maliciously by foreign governments after being listed abroad”.

Twelve other ministries collaborated on the draft law published by the Cyberspace Administration on its WeChat account, including the National Commission for Development and Reforms – the body of the State Council, the Chinese government, which deals with the five-year plans of development – the Ministry of National Security, the market regulator and the stock market regulator, and the new rules are open for public comment until 25 July.

Among the scenarios that can open, according to analysts, the new rules will have the effect of discouraging prices on Wall Street, in favor of Hong Kong. The new rules are part of the crackdown on the on-call car giant, Didi Chuxing, which came under investigation by the Cyberspace Administration two days after its debut on Wall Street with a $ 4.4 billion IPO, the largest of a Chinese group on the NYSE, after the listing of Alibaba ($ 25 billion) in 2014 .

In a few days, the value of Didi collapsed on the US price lists and the Beijing squeeze also led to the removal from the Chinese app stores of the app of the ride-hailing giant and of 25 other companies controlled by the Chinese Uber. Didi also came in the crosshairs of a barrage of fines imposed for anti-trust violations by internet giants, including e-commerce giant Alibaba, and TenCent, which controls messaging apps and services WeChat.

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