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US China news: Chinese regulator targets US-listed tech firms

BEIJING: A day after the Chinese Cyber ​​Security Review Office ordered the App Store to remove ride-hailing app Didi Chuxing, the regulator announced on Monday that it would take job recruitment platform Boss Zipin and two commercial freight platforms down on national security concerns. will examine.
In order to address national data security risks, maintain national security and protect the public interest, Boss Zipin and truck-booking platforms Yunmenman and Huochebang under the Full Truck Alliance, the Global Times reported, said in a notice by the Chinese regulator. Cyber ​​security review will be done against
The regulator said that new user registrations on the three platforms have been put on hold during the review. Boss Zippin’ owner Kanjun was listed on the US NASDAQ on June 11. Full Truck Alliance, the Chinese service that connects freight shippers and truckers, held an IPO in the US on June 22.
“These companies are now listed in the US. In the process, some critical data and personal information held by the companies may be leaked due to US regulation. In other words, there may be outbound security risks of data from listing in the US,” Zuo Xiaodong, vice president of the China Information Security Research Institute, told GT on Monday.
On Sunday, the Chinese Cyberspace Administration ordered online mobile app stores to remove ride-hailing app Didi Chuxing from its shelves due to “serious violations of law and regulation” in the collection and use of personal information.
The Chinese watchdog said that the application seriously violated relevant laws and regulations when collecting and abusing user data. The regulator asked the passenger carrier to take concrete measures to rectify the lapses as per law and national standards.
Last week, China’s Internet watchdog launched an investigation into Didi Chuxing for issues related to national data security. NHK World reported that the development comes two days after the company made its debut on the New York Stock Exchange (NYSE).
Liu Dingding, an independent technical analyst based in Beijing, said given the current situation, more Chinese companies that intend to list in the US will have a second thought amid the country’s tight security over data security.
Other experts believe that the review is yet another example of Beijing’s crackdown on influential IT giants. Earlier this April, the Chinese government imposed heavy fines on Chinese e-commerce giant Alibaba Group.
Claiming crackdown on anti-competitive practices among Chinese internet giants, Beijing has made extensive efforts to clean up the operations of the country’s fast-growing and freewheeling tech sector.
Chinese regulators are calling out tech companies for alleged offenses including inconsistent pricing, user privacy concerns and difficult working conditions, The Wall Street Journal (WSJ) reports.
Beijing has been infamous for using anti-monopoly rules to curb the market influence of foreign firms. Chinese regulators have also called on citizens of the country to help monitor the behavior of tech companies. Tech companies have responded with a pledge to be good corporate citizens.

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