China Announces New Cybersecurity
July 12, 2021
China’s technology ministry Monday
announced a three-year action plan to develop the country’s
cyber-security industry, which it estimates will be worth more than $38
billion by 2023, according to Reuters.
The new strategy by the Ministry of Industry and Information Technology
is being unveiled as Beijing tightens its grip on the country’s
technology sector, underscored by its regulatory probe of ride-hailing
giant Didi Global.
The company was valued at $68 billion after its June 30 initial public
offering, or IPO, on the New York Stock Exchange.
Chinese regulators launched a cybersecurity review of the company and
said new users would not be allowed to register during the review,
sending Didi Global share prices tumbling. The Cyberspace Administration
of China then ordered Didi’s app removed from domestic mobile app
The agency has also ordered two other tech-based companies, Uber-like
trucking startup Full Truck Alliance and Kanzhun, which connects job
seekers and hiring enterprises via a mobile app, to suspend user
registrations and submit to security reviews, citing risks to “national
The two companies, like Didi Global, had also recently issued IPOs on
U.S. stock exchanges.