DiDi: data, temptation and coup of the Chinese regime

On Friday July 2, what should have been experienced as a holiday turned into an earthquake in DiDi Chuxing Technology. This was after a brief and concise call taken at the company headquarters to Beijing which spread – in seconds and like a devastating tsunami – to new York. It happened minutes before his actions went public and the bells of Wall Street They will crown the popular Chinese transport and mobility service application with glory, which has 550 million users and a presence in more than a thousand cities around the world. Communication froze the blood of company executives.

On the other end of the line, a bureaucrat from the Chinese cyberspace administration (CAC) informed them that within hours application It could not be downloaded to any other device in the whole Chinese territory for technical and legal reasons and its structure and engineering had to be changed for the use of the data. WeChat Yes Alipay they were the first to respond to the command, blocking the app. Have I got She then pulled her products from all digital stores in the midst of the IPO: the company’s shares instantly collapsed, and the wave of the explosion gathered momentum without stopping.

The CAC accusation has been covered up under a seemingly noble cloak: regime says technology has misused user data. To reverse this situation and convince the Chinese authorities, it will now have to present a new scheme for processing this information. On the other hand, it will be difficult for him to win over disillusioned global investors again. Who would want to risk millions on a company whose algorithms will be scrutinized by Beijing?

After the earthquake, the company opted for secrecy. He only issued a press release sent to the agency Reuters: “Prior to the IPO, DiDi was unaware of ACC decisions – announced July 2-4, 2021 – regarding the cybersecurity review and suspension of new user registrations in China and the elimination of application DiDi Chuxing app stores in China respectively”. This may be true, although it is difficult to imagine that the leaders and lawyers of such a firm did not have in their short-term memory the coup of the regime against Ali Baba, the commercial giant of Jack Ma dishonored under arguments of the same smell.

Have I got is subject to careful review of the Data security law – approved in June – which prevents Chinese companies from submitting to audits or foreign legal proceedings without first obtaining the regime’s approval. That is to say, Beijing it seeks to have a monopoly on the investigation of local businesses even if they operate abroad. For monopoly and for investigation to interpret : Xi Jinping he wants absolute control over the data of “his” companies. In this direction, application mobility is a an unimaginable wealth of information about users, companies and governments.

According to the newspaper Financial Time, Have I got could serve as an example for the rest of the big Chinese techs that try to operate in the stock markets of the United States.

However, North American shareholders felt cheated. They alleged that the tech company – valued at around $ 70 billion – had been dishonest in not revealing to them the conversations it was having with the regime. That’s why they decided to act and launched a class action lawsuit against the CEO. Will wei cheng, President Jean Qing Liu, among other officers and directors. Goldman Sachs, Morgan stanley Yes JPMorgan Chase & Co., who promoted the IPO were also exposed. The battle will be long.

In addition to being a professor-researcher in Latin American studies at the US Army War College Strategic, Evan ellis is one of the academics who knows best the movements and intentions of China low Xi and the centenary the Chinese Communist Party (PCC). Match that behind the push against Have I got is the beijing obsession for the treatment of global intelligence data. As you could do with powerful 5G antennas from Huawei spread over all continents, Have I got It would provide you with real-time information on the movements of people who might interest you: 550 million users in a thousand different cities simultaneously.

Users would contribute to the regime’s vast body of knowledge not only about the route they would take with each of their taxis, but would also provide references on other day-to-day aspects of their lives: who you met, where you live, work and eat, what time you fell asleep. All this for the simple fact of having already downloaded the application on the mobile phone.

“I suspect that the model behind DiDi and Jack Ma’s companies is a recognition of the importance of the sector as a potential control instrument, and a message that their freedom only extends to the extent that they serve the interests of the Chinese state.“, He said Ellis a Infobae. “Perhaps this could be a reaction to DiDi’s reluctance to cooperate with anything the government wanted regarding their users’ data … or some form of pressure to get it …», He remarked.

Ryan fedasiuk, research analyst at Georgetown Center for Security and Emerging Technologies He spoke of how the PCC and the central government has lifted a barrier on technology. “The Chinese Communist Party had previously targeted Ant Group, which was preparing an IPO and was forced to cancel it. But this step is an escalation because it is retroactive, in effect sanctioning investors who have participated in an IPO (Initial Public Offering) already carried out. The ACC launched the review and suspended DiDi’s presence in Chinese app stores just days after its public debut.“He said in statements to Reuters.

Ellis goes further: “I see DiDi as another important source of global intelligence data for China, much like Huawei, due to the huge access it has to data on its customers’ financial movements and transactions, as well as the capacity to employ massive numbers. low investment … much lower than any other Chinese investment in the region”.

“DiDi is growing rapidly throughout Latin America (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Dominican Republic) and is well positioned to continue this expansion as a Latin America desperate for the job recovers. of COVID-19. Thus, it represents a huge potential source of influence and benefit for China as it engages in the region, as well as a source of intelligence.», He concluded.

But that of Have I got It wasn’t the only blow that Xi Jinping gave in the last days. Amid the global shortage of this input, China managed to stay with a strategic company that could help the regime in one of the biggest deficits it is experiencing: microprocessor scale manufacturing. Newport Wafer Fab It is the UK’s largest chipmaker. It was formally acquired by Nexperia, a china owned company Wingtech technology whose path of sharing leads to Commission for the supervision and administration of State assets of the Council of State, a special commission of people from the Republic of China, which owns 30% of its shares. The rest are divided into other companies with ties to the state. The discovery was highlighted by the information network CNCB. Neport Wafer Fab will be under the control of Xi and of PCC if he UK gives approval of the agreement. The phone is likely to be very active during these hours on the number 10 Downing Street.

Twitter: @TotiPI

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