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A cell phone shows the Didi Chuxing app and its stock price, Yichang, Hubei Province, China, July 6, 2021.
Costphoto | Barcroft Media | Getty Images
China’s cyberspace regulator said on Saturday that any company with data for more than one million users must undergo a security screening before listing its shares overseas, broadening the crackdown on its large “flat economy.” -form”.
The security review will focus on the risks of data being affected, controlled or manipulated by foreign governments after overseas registrations, the Cyberspace Administration of China (CAC) said, releasing the proposed rules. on its website.
Chinese cyberspace regulators are placing more stringent restrictions on data collection and storage. The authorities are also pushing businesses more broadly to register on the internal market.
Two new sets of rules, the Data Security Act and the Personal Information Protection Act, which respectively cover data storage and privacy, are expected to come into force this year.
Saturday’s announcement will also require companies to submit IPO documents they plan to file for review.
The security review, according to the ACC, will view national security risks as “a risk of supply chain disruption due to political, diplomatic, commercial and other factors”, and the risk of key data ” maliciously used by foreign governments after registration in foreign countries. “
The CAC is seeking public opinion on the proposed rules.
The notice comes after Chinese authorities launched an investigation into ride-sharing giant Didi Global for allegedly violating user privacy, just days after it registered in New York.
Didi’s shares plunged 20% on news of the investigation, and the company said its earnings would be affected.
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