Beijing urges ‘Chinese Uber’ Didi to quit Wall Street

Chinese authorities have asked Didi, the equivalent of Uber in China, to withdraw from Wall Street where the group has been listed since this summer, against a backdrop of technological rivalry between Beijing and Washington, Bloomberg reported on Friday. Didi, who dominates the car reservation market with driver (VTC) in his country, has been the target of an administrative investigation since July in connection with his collection of private data.

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These setbacks come after the raising of 4.4 billion dollars (3.7 billion euros) by Didi when it entered the New York Stock Exchange at the end of June – which Beijing was not in favor of. Fearing a transfer of sensitive data to the United States, the Chinese authorities then took an unprecedented measure against Didi: banning the downloading of his app in China. However, it remains accessible to users who have already installed it on their phone.

Context of growing rivalry

Beijing now wants the Chinese champion of the VTC to withdraw from the New York Stock Exchange, writes Friday Bloomberg, which quotes sources “close to the file“. China’s internet regulator has asked Didi to come up with proposals to this effect, which will then need government approval, according to the financial agency.

The decision, if confirmed, would mark a turning point for Chinese start-ups that have long been encouraged to raise funds in the United States to develop. But amid growing rivalry with Washington, especially in the tech arena, Beijing now fears crucial data accumulated by its giants leaking abroad.

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In recent months, China has been working on tightening foreign listing conditions for its companies. Beijing particularly wants a thorough review of cybersecurity risks beforehand. In a context of economic nationalism, the communist regime also encourages its companies to list on the national market and has just opened a new stock exchange in Beijing, intended for SMEs, particularly those active in new technologies.

 
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