fredag 13. august 2021

The Chinese government risks becoming the primary obstacle to the advancement of the internet industry in China

On July 2, 2021, just one day after Xi Jinping celebrated the centenary of the Chinese Communist Party (CCP), the Chinese government abruptly announced a cybersecurity reviewover DiDi. As the most popular ride-hailing company in China, which offers daily service to 550 million users through an app, DiDi had a low-key IPO in the United States only days earlier. The review included extremely harsh measures such as banning DiDi from adding new users. Afterward the stock price of DiDi tumbled.

Dramatic as it may seem, the DiDi episode was not the first time investors in the Chinese tech sector got shocked.