Beautiful Virgin Islands

Monday, Sep 01, 2025

Why is China cracking down on tech groups like Didi?

Why is China cracking down on tech groups like Didi?

China's Communist Party leaders are uneasy with the growing influence of big technology firms. Is Didi the latest target?

Chinese regulators have clamped down on the country’s largest ride-hailing app, Didi Global Inc., days after its shares began trading in New York.

Authorities told Didi to stop new registrations and ordered its app removed from China’s app stores pending a cybersecurity review.

The government said it was acting to prevent security risks and protect the public interest. Didi is the latest company to face intensified scrutiny in a crackdown on some of China’s biggest technology giants.

What is Didi?


China’s Didi Global Inc. is one of the world’s largest ride-hailing apps. Three-quarters of its 493 million annual active users are in China. Beijing-based Didi operates in 14 other countries including Brazil and Mexico.

Years ago, Didi and Uber competed in China. In 2016, after a two-year price war, Didi bought Uber’s China operations.

Did raised $4.4 billion (€3.7 billion) in a June 30 initial public offering in New York.

What is the issue with Didi?


China’s cyberspace watchdog said it suspects Didi was involved in the illegal collection and use of personal data. It did not cite any specific violations.

The state-owned newspaper Global Times said in an editorial Monday that Didi has the “most detailed personal travel information” of users among all large technology firms. It said the company could conduct big data analysis of users' habits and behaviour, posing a potential risk for individuals.

Why is China cracking down?


It's unclear if there are other reasons the Chinese government might be focusing on Didi. Officials have expressed growing concern about the use of user data by large technology companies.

China’s Cyberspace Administration announced Monday that it was also launching cybersecurity reviews of truck logistics platforms Huochebang and Yunmanman, and online recruitment platform Boss Zhipin. Registrations of new users were halted pending those reviews.

Full Truck Alliance, which operates the Huochebang and Yunmanman platforms, and Kanzhun Ltd., which runs Boss Zhipin, also recently listed shares in the US.

A sweeping Data Security Law enacted in June requires companies and individuals to get approval from relevant authorities to transfer any data stored in China to overseas entities, such as law enforcement agencies. The law takes effect on September 1.

Violators can be fined between 2 million to 10 million yuan (about €260,000-€1.2 million) and could have their business suspended.

China VS. big tech


China's Communist Party leaders are uneasy with the growing influence of big technology firms. Key issues are monopolistic practices and the handling of user data.

Until recently, tech firms operated in a regulatory grey zone, with relative freedom to create their business models, demand merchants and vendors sign exclusive contracts with their platforms and collect user data to better understand their customers.

After China introduced health monitoring and quarantine apps during the pandemic, it became clear that tech companies like e-commerce giant Alibaba and gaming company Tencent controlled huge amounts of data, said Shaun Rein, founder and managing director of China Market Research Group in Shanghai.

“I think it was in the last year and a half that you can start to see just how much power these technology companies have,” said Rein.

Alibaba Group Holding recently was fined a record €2.3 billion over antitrust violations. Other big tech companies have been fined or investigated for alleged anti-competitive behaviour and lapses in financial disclosure.

How has Didi reacted?


Didi said in a statement that having its app removed “may have an adverse impact on its revenue in China.“

It promised to fix any problems, “protect users’ privacy and data security, and continue to provide secure and convenient services to its users.”

The app can no longer be downloaded in China, although those who already downloaded and installed the app can still use it, Didi said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
×