By Martin Quin Pollard and Eduardo Baptista
BEIJING (Reuters) – China’s cyberspace regulator wants to create a relationship between internet companies and the government, a senior official said. A “cordial” relationship, the latest is a verbal reassurance to an industry that remains on the fringes after a long period of harsh regulatory crackdowns.
Niu Yibing, deputy director of the Cyberspace Administration of China (CAC )), the agency said at a press conference on Friday that the The institution supports the healthy development of the industry and hopes to create a “healthy, motivated and enterprising entrepreneurial atmosphere”.
CAC, one of the Chinese regulators, recently 2020 launched an unprecedented crackdown on China’s tech giants. The movement has upended longstanding industry conventions, created new rules for how companies should conduct business and disrupted markets, wiping billions of dollars off their market caps.
While regulators face a slowing economy and did not announce new rules this year as they did last year, companies remain cautious, including giants Alibaba (NYSE: BABA) Group and Tencent Holdings (OTC: TCEHY ) cut new investments and cut thousands of jobs.
Some of the biggest concerns for investors include new rules that took effect in February on Chinese companies with more than 1 data
Sun Weimin, director of the regulator’s Cybersecurity Coordination Bureau It said the agency still supports domestic companies seeking to list overseas and is scrutinizing to ensure data that could be misused by foreign governments is not involved.
The saga of Chinese ride-hailing giant Didi Global is also inconclusive, a subject the CAC-led investigation forced the ride-hailing giant to delist from New York within a year of its debut, And make foreign investors wary of China’s tech sector.
While Didi was fined $1.2 billion last month for data security violations, it was unclear if or when its apps would be allowed to return to the app store, and if or when new user registrations could be resumed.
The CAC is overseeing Didi’s rectification work, and the regulator will continue to work hard to eliminate security risks and punish behaviors that endanger national security or data security, Sun said.
A BEIJING – An executive of a tech-based company previously fined by regulators over data security concerns told Reuters that the CAC’s statement on Didi
“DiDi is different from other internet companies and the antitrust work against other tech giants is either over or stabilized, but clearly regulators are treating Didi differently,” the executive said, rejecting Name was released because he was not authorized to speak to the media.
