Chinese Rideshare Giant Didi in Hot Water

After Didi Chuxing Technology Co., a powerhouse Chinese ride-hailing app, launched a massive initial public offering on the New York Stock Exchange, it found itself in hot water with domestic regulators. On July 4, the Cyberspace Administration of China (CAC) announced a ban of the app from all app stores in China, citing serious violations of collection and use of personal data. This decision came swiftly, just two days after the CAC said it was initiating a cybersecurity probe of the firm. This latest review and penalty on Didi adds to the giant’s mounting issues with regulators, from antitrust to data security…

These practices have increasingly blurred the line between public and private industry in China, with the government, and the Communist Party, reasserting its control with the intent to steer industries toward its desired outcomes. This phenomenon has been coined “CCP Inc”. However, it remains unclear the extent to which the bureaucratic politics between regulatory agencies will stifle innovation or whether the state apparatus’s carrot-and-stick policies will win out.