China 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, Bloomberg agency said on Friday, citing sources “close to the matter”.

China’s internet regulator has asked Didi to come up with proposals to do so, 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.

Downloading the app banned in China

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. 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.

About that: Didi Chuxing, the Chinese Uber, wanted to go faster than Beijing

Fearing a transfer of sensitive data to the United States, the Chinese authorities had already taken an unprecedented measure against Didi: prohibiting the downloading of his app in China. However, it remains accessible to users who have already installed it on their phone.

Companies encouraged to list on the national market

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.

Read more: China inaugurates new stock exchange, its fourth, in Beijing

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.

 
For Latest Updates Follow us on Google News
 

PREV Liga: Benzema – Vinicius, the winning duo of Real Madrid
NEXT Benzema saves Real Madrid against Sevilla FC