Why is Beijing cracking down on Chinese tech giants listed on Wall St?
China’s answer to Uber, Didi was one of this year’s hottest listings on Wall Street. It raised close to 4.5 billion dollars. But the tech behemoth’s international foray could cost the company. Regulators are now scrutinizing the firm’s business practices. When Didi first listed on Wall Street just last week, it felt like another milestone for the ride-hailing company that has long been ubiquitous in China, facilitating 20 million rides every single day. But some experts were already getting worried. It seems they were right. On Monday, Beijing ordered app-store operators to remove the app. It is investigating Didi for illegal collection of personal data. Also under investigation: Online recruiter Boss Zhipin and Full Truck Alliance, often called “Uber for Trucks,” and all for the same reason and based on China’s national security and cybersecurity law. As of now, all three app-based businesses are banned from registering new users. Meanwhile, Didi is doing everything to please the government “We sincerely thank the responsible departments for guiding Didi to look into the risks,” reads a statement posted on Weibo, where the company promised to rectify the issues.