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China Suspends Didi App to Enforce National Data Sovereignty

MIN READJul 6, 2021 | 20:18 GMT

A driver uses the Didi ride-hailing app on his smartphone while driving in Beijing on July 2, 2021.

A driver uses the Didi ride-hailing app on his smartphone while driving in Beijing on July 2, 2021.

(JADE GAO/AFP via Getty Images)

Beijing’s targeting of ride- and truck-hailing apps is intended to align companies with China’s increasingly sovereignty-centered network security standards, which will force Chinese tech firms to better align with Beijing’s strategic objectives. The Cyberspace Administration of China (CAC) announced on July 4 that ride-hailing firm Didi’s main app would be removed from Chinese app stores for violating laws related to collecting and using personal information, citing China’s Network Security Law. The following day, the CAC then announced similar measures restricting new user registration for two truck-hailing apps run by Full Truck Alliance (FTA), along with the talent recruitment platform Boss Direct Hire, again citing network security concerns. On July 6, China’s State Council announced it would tighten network security oversight, especially for overseas listings, for all Chinese firms, with the most likely motivator for these restrictions being potential leaks of Chinese “critical infrastructure” data into U.S. markets. All three firms...

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