China launches cybersecurity investigation into more US listed companies after Didi

BEIJING, July 5 (Reuters) – China’s cyberspace watchdog said on Monday it was investigating online recruiter Zhipin.com and truck delivery apps Huochebang and Yunmanman, stepping up crackdown on tech companies in the continent in a context of stricter data security regulations.

The announcement comes a day after the Cyberspace Administration of China (CAC) ordered the suspension of app downloads for Chinese rideshare giant Didi Global Inc (DIDI.N), which was made public in a U.S. listing on last month. Read more

Full Truck Alliance (YMM.N), the result of a merger between Huochebang and Yunmanman, and Kanzhun Ltd (BZ.O), owner of Zhipin.com, was publicly traded in the United States last month. Read more

The three app-based companies are expected to suspend registrations of new users during the review, the ACC said in a statement, adding that the investigations were aimed at “preventing national data security risks and protecting national security.”

The cyberspace agency did not give further details on the investigation into the three apps, but cited China’s National Security Law and Cyber ​​Security Law.

Chinese regulators have also recently tightened scrutiny of internet platform companies, including Alibaba Group (9988.HK) and Meituan (3690.HK), for anti-competitive practices.

Full Truck Alliance, often dubbed “Uber for Trucks,” has over 10 million registered truck drivers and over 5 million truck owners on its platform.

Zhipin.com, which connects job seekers and employers, is China’s largest online recruiter with 24.9 million monthly active users in the first quarter of 2021, Kanzhun said in its flyer.

(This story is passed on to correct Kanzhun’s spelling in the third and eighth paragraphs)

Reporting by Gabriel Crossley, Yingzhi Yang and Yilei Sun; Editing by Tony Munroe and Muralikumar Anantharaman

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