Just after taxi giant Didi Chuxing used taxi giant Didi Chuxing as part of its regulatory measures to disrupt the IPO after its massive IPO in the United States, China is expanding its investigation of two leading Chinese companies in the United States.
In turn, this may raise concerns about the economic divide between China and the United States, at least in sensitive areas such as technology, because both Xi Jinping and Joe Biden have taken measures to prevent the flow of capital and technology between the two superpowers.
For companies such as Goldman Sachs and Morgan Stanley, New York stocks are a lucrative deal, and these companies are the main underwriters of Didi’s initial public offerings.
Among the unanswered questions by global investors, Chinese technology company bosses, and US regulators: “Will he attract Beijing’s attention next time? As far as Didi is concerned, should investors receive a clearer warning about China’s tough attitude before the IPO?”
The latest crackdown on the tech firm
Shen Meng, director of Chanson and Co., a boutique investment bank in Beijing, announced today said Didi’s investigation and other investigations show tensions between the United States and China.
This incident will stifle the desire of Chinese companies to conduct big data analysis of personal behavior and habits in the US, the Global Times wrote on Monday.
China should monitor Didi’s data security more closely. The United States and its two largest shareholders are foreign companies.
The newspaper added that it controls a super database that contains more detailed personal information than the country, not to mention that you have the right to access this data for free use.
— CNA (@ChannelNewsAsia) July 5, 2021
He added that although it is not clear how Didi illegally collects personal data, the latest crackdown company should collect the minimum information required for its services.
As the government seeks to strengthen property rights, the investigation is part of a broader crackdown on China’s largest Internet conglomerate. Processing massive amounts of information collected by hundreds of millions of users every day.
Company’s darkest days
As part of the review, the China Cyberspace Administration of China ordered the Didi, Truck Gang, and Yunmanman platforms from the All Car Alliance, and Xiang Kanzhun ordered Director Jiping. However, new registrations and existing customers can continue to use these services.
Didi announced on social media that he has stopped registering new users since July 3 and is currently working to adapt its application to regulatory requirements. He sincerely thanked the authorities for their supervision. In a subsequent statement, Didi said that the regulation might have a “negative” impact on China’s revenue.
The investigation was launched immediately after Didi’s public offering of a $4.4 billion IPO after its listing in New York on Wednesday. The US dollar is the largest Chinese company in the United States, second only to Alibaba.
After the listing, SoftBank held about 20% of Didi’s shares, while Uber held about 12% of the shares after Didi applied. The founder Cheng Wei owns about 6 pieces.5%, slightly higher than Tencent’s 6.4%.
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