Thursday, 2023 December 7

After Didi, 3 more companies are dragooned into security reviews by Chinese government watchdog

After initiating a probe into Didi’s handling of user data and ordering the removal of its app from app stores in China, the Cyberspace Administration of China (CAC) is invoking the country’s national security and cybersecurity laws to investigate three more companies—Boss Zhipin, Yunmanman, and Huochebang.

CAC’s announcement was made public on Monday, July 5. It said that the companies will “cooperate for a network security review” and halt all new user registrations for the time being.

Boss Zhipin is China’s largest online recruitment portal in China, and had the most monthly active users for platforms of its type in 2020, according to the company’s prospectus filed with the United States Securities and Exchange Commission. It had its market debut on the Nasdaq on June 11, and raised USD 912 million on its first day of trading, reaching a market cap of nearly USD 15 billion.

Yunmanman and Huochebang, which match truckers with freight orders, merged in 2017 to form Full Truck Alliance, which debuted on the New York Stock Exchange on June 22. Full Truck Alliance raised around USD 1.6 billion in its IPO—one of the largest for Chinese companies in the United States this year.

CAC’s announcement did not indicate how long the probe will last.

Read this: China’s strengthening grip over data collection may hinder its burgeoning mobility sector

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Brady Ng
Brady Ng
Ng is spearheading KrASIA’s daily coverage of innovation in China and Southeast Asia, with a focus on the intersection of tech, policy, culture, and ingenuity.

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