Didi says it stores all China user and roads data in China
– China’s ride-hailing giant Didi Global Inc (DIDI.N) maintains all Chinese user and road data on the country’s servers and it’s “totally impossible” for the firm to transmit data to the United States, a top company official said on Saturday.
Didi Vice President Li Min also warned that after accusations were made on China’s Twitter-like Weibo platform, the business will sue any social media users who said the company had transferred data during its recent IPO process.
On Friday, China’s cyberspace agency stated it had begun an inquiry into Didi to defend national security and public interest, only two days after the firm started trading on the New York Stock Exchange.
Chinese Cyberspace Administration (CAC) news probe, and the agency’s decision to stop Didi from registering new customers during its investigation, knocked 5 percent off Didi’s shares on Friday.
“Like many overseas-listed Chinese businesses, Didi maintains all domestic user data on servers in China, it is completely impossible to transmit data to the U.S.,” Li stated in a Weibo post.
Didi, which offers services in China and over 15 foreign countries, collects daily huge amounts of real-time mobility data. It utilizes certain data for autonomous driving and traffic analysis.
The firm, founded by Will Cheng in 2012, has previously undergone regulatory tests in China on safety and operating license.
“I’m not sure what the eventual consequences could be, but the regulatory crackdown was a continuing worry even before the IPO, with Didi being summoned in twice by authorities,” Sumeet Singh, Aequitas Research Director publishing on Smartkarma, told Reuters on Saturday before Li’s tweet.
“This time preventing the firm from bringing in new customers shouldn’t hurt a lot given the company already has 80 percent-plus market share to start with, as long as it’s not prolonged for a while.”
Cyberspace agency gave no indication of how long the inquiry would run or provide any other facts.
Didi said it planned to undertake a complete cybersecurity risk review on Friday and would cooperate fully with the necessary government authorities. Besides suspending new user registrations in China, it also stated it was working normally.
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