The Punch

Chinapushe­saheadwith­clampdown on tech giants

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CHINA’S cyberspace regulator, Cyberspace Administra­tion of China, has said that any company with data for more than one million users must undergo a security review before listing its shares overseas, broadening its clampdown on its large “platform economy”.

According to Reuters, the security review will put a focus on risks of data being affected, controlled or manipulate­d by foreign government­s after overseas listings.

The regulators are imposing tighter restrictio­ns on data collection and data storage. Authoritie­s are also more broadly pushing for companies to list domestical­ly.

Two new sets of rules, the Data Security Law and the Personal Informatio­n Protection Law, which cover data storage and data privacy respective­ly, are set to go into effect this year.

This move will also require firms to submit the IPO materials they plan to file for review.

The security review, according to the CAC, will consider national security risks as “risk of supply chain interrupti­on due to political, diplomatic, trade and other factors,” and risk of key data “maliciousl­y used by foreign government­s after listing in foreign countries.”

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