Chinese regulators target ride-hailing company Didi Chuxing
Jul 03, 2021
Beijing [China], July 3 : China's internet watchdog has started an investigation into the country's largest ride-hailing company, Didi Chuxing, for issues related to national data security.
This development came just two days after the company made its debut on the New York Stock Exchange (NYSE), NHK World reported. According to NYSE, Didi's IPO was the bourse's second-biggest of the year.
As things stand, the Chinese regulator has banned the application from accepting new users while the investigation takes place.
Experts believe that the review is another example of Beijing crackdown on influential IT giants. Earlier this April, the Chinese government imposed a huge fine on Chinese e-commerce giant Alibaba Group.
Claiming a crackdown on anti-competitive practices among Chinese internet giants, Beijing has ramped up a broader effort to clean up the operations of the country's fast-growing and freewheeling tech sector.
Every week, Chinese regulators have been calling out tech companies for alleged offences, including inconsistent pricing, user privacy concerns and difficult working conditions, reported The Wall Street Journal (WSJ).
Beijing has been infamous for using antimonopoly rules to curb the market influence of foreign firms. In April, regulators imposed a whopping USD 2.8 billion fine upon Alibaba, stating that it had abused its dominant market position by engaging in a controversial practice.
Chinese regulators have also called on the nation's citizens to help supervise the behaviour of tech companies. Tech companies have responded with pledges to be good corporate citizens.
