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Didi Chuxing
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Didi cybersecurity review expected to set precedent for future ‘national security’ probes into data collection

  • The Didi review is the first time Beijing has invoked national security in a Big Tech investigation, a move that could be precedent-setting, say analysts
  • News of the investigation, coming two days after Didi’s IPO in New York, triggered a 5 per cent drop in its share price

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A woman rides a bike past the Beijing headquarters of Didi Chuxing. Photo: Reuters
Tracy Qu
China’s cybersecurity review of ride-hailing giant Didi Chuxing has set a precedent for how the government will handle national security issues related to data, and lays the groundwork for future investigations into other major tech companies, according to analysts.
The cyberspace security review office, an obscure unit of the powerful Chinese Administration of Cyberspace (CAC), announced the review into Didi on Friday, saying it had stopped the ride hailing giant from registering new users. In another statement on Sunday, CAC said it had also ordered app stores to remove Didi from their platforms.

Then on Monday morning, the cyberspace security review office said it was launching a similar investigation on “national security” grounds into truck-hailing apps Yunmanman and Huochebang, as well as a recruiting app operated by Boss Zhipin.

Like Didi, which listed on the New York Stock Exchange last week, Full Truck Alliance, which runs Yunmanman and Huochebang, raised US$1.6 billion from its stock offering last month, while Boss Zhipin started trading on Nasdaq in mid-June after raising US$912 million.

CAC said the investigations were launched “to prevent risks regarding national data security and to maintain national security”.

The office said the probe was conducted in accordance with the National Security Law, the Cybersecurity Law and the Measures for Cybersecurity Review, but it did not mention any specific clauses that Didi had supposedly violated.

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