US and China Engage in 'Data War'... China to Further Investigate US Listed Companies

Didi Chuxing Follow-up Investigation Announced
WSJ "China Requests Didi Chuxing IPO Postponement"
US TikTok Data Leak Concerns Contradicted

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min, Beijing=Correspondent Jo Young-shin] The technological hegemony competition between the United States and China is showing signs of shifting to the data sector this time.

China's Cyberspace Administration of China (CAC) announced on the 5th (local time) that it will conduct an internet security review on three online platform companies?Winmanman (運滿滿), Huochebang (貨車幇), and BOSS Zhipin (直聘)?following its review of the domestic ride-sharing company Didi Chuxing. Like Didi Chuxing, these three platforms are prohibited from recruiting new members during the investigation.

These companies share commonalities in that they utilize transportation infrastructure data (geographical and location data) within China, handle personal information, enjoy monopolistic positions in the Chinese market, and have recently been listed on the U.S. stock market. Winmanman and Huochebang are known as the Didi Chuxing of the freight industry. Twenty percent (2.8 million) of China's large and medium truck drivers use these platforms. BOSS Zhipin is a Chinese recruitment platform, with 85.8 million certified job seekers last year.

Chinese regulatory authorities are reportedly investigating the possibility that important national security-related information may have leaked to the U.S. during these companies' listing processes in New York.

There is also a prevailing atmosphere that the Chinese transportation data might have already flowed into the U.S. during the listing review process. The U.S. enforces laws that allow the delisting of Chinese companies from its stock market if they fail to comply with U.S. accounting audit standards.

Chinese economic media Caixin reported, "Didi Chuxing secretly prepared for its U.S. listing around mid-April and handed over some materials to the U.S."

The Wall Street Journal (WSJ), citing sources on the same day, reported that Didi Chuxing ignored CAC's request to postpone its New York listing and proceeded with the listing. Chinese security authorities are said to be sensitive to information about major clients and supply chains that the U.S. demands from Chinese companies listed in the U.S.

This situation is the exact opposite of the earlier U.S. concerns about TikTok storing Americans' personal information on servers located in China, raising fears of personal data leakage. U.S. economic broadcaster CNBC analyzed, "China's regulatory crackdown on tech giant companies is creating a new battlefield called 'data.'"

This content was produced with the assistance of AI translation services.