Nation supports firms in financing overseas, to strengthen review on key data sent abroad

China’s cyberspace watchdog said on Friday that it will always support domestic firms in making rational use of overseas capital markets for financing and development. Meanwhile, it will focus on reviewing and assessing leakage risks of key data from companies planning to raise funds overseas.

Sun Weimin, head of the cybersecurity coordination bureau of the Cyberspace Administration of China (CAC), told a news conference that reviews of internet platform operators that plan to raise money overseas will center around possible risks of stolen, leaked, damaged or illegally used core data or personal information.

Factors such as the risk of critical information infrastructure, key data, or a large amount of personal information being controlled, and maliciously used by foreign governments, as well as other network information security risks, will also be assessed and reviewed, Sun said.

Observers said such remarks by a senior official could serve as an assurance for industry players, pointing to a clear path and stipulating key points for companies to follow, which will benefit a wide range of internet companies that wish to list overseas.

China has become more stringent on data security, as the rapid development of the internet economy is also posing data security risks.

A number of Chinese internet giants faced regulatory scrutiny for data security violations over the past year or so.

In the latest move, China’s internet regulator fined ridehailing giant Didi Global 8.026 billion yuan ($1.2 billion) for 16 legal violations in late July, calling an end to a cybersecurity probe that lasted more than one year.

In the next step, the CAC will guide and urge Didi to carry out corresponding rectification work to eliminate hidden security risks, said Niu Yibing, vice minister of the CAC.

Niu also said the agency was supportive of the sector’s sound development and will create a healthy, rule-based environment.