[Forbidden news]The CCP pushes the Internet censorship law to make it harder for companies to list overseas | Cybersecurity Review Measures |

[NTDTV, Beijing time, February 17, 2022]On February 15, the CCP authorities officially began to implement the “Network Security Review Measures”. The law requires more than a million Chinese technology companies to declare cybersecurity reviews to the Chinese government before going public abroad. Commentators believe that the CCP’s new regulations are very detrimental to the development of China’s innovative technology companies.

It seems more and more difficult for Chinese technology companies to go overseas to list!

On February 15, the Cybersecurity Review Measures issued by the Cyberspace Administration of China and other regulatory authorities were officially implemented.

This law includes situations such as data processing activities carried out by network platform operators that affect or may affect national security, etc., into the network security review.

Network platform operators with personal information of more than 1 million users are required to go public overseas and must report to the Cybersecurity Review Office for cybersecurity review.

Zheng Xuguang, an economist living in the United States: “Online platform operators like Alibaba, Tencent, and Didi Chuxing are all platform operators. First, they have a large number of users, and secondly, they have a large number of service providers.”

Xie Tian, ​​a professor at the Aiken School of Business at the University of South Carolina: “For the CCP, if these Chinese companies have collected data on millions, tens of millions, or even hundreds of millions of consumers, and they want to go public overseas, It means their past performance, sales activities, customer information, he has to disclose it.”

The new law stipulates that when applying for a cybersecurity review, the regulatory target needs to submit an analysis report that affects or may affect national security, as well as procurement documents, agreements, contracts to be signed, or listing application documents.

Xie Tian: “The CCP is falsifying almost all issues concerning China’s economy, population, and income. If it allows these foreign companies to take the information of these Internet companies, they may know about these Chinese companies after a little analysis. What is the income status of people, and what is the debt status, this is equivalent to the original fakes of the CCP, and all the lies will be exposed.”

According to the new regulations, companies that want to go public overseas may face three situations when applying for cybersecurity review: one is that no review is required; After the review is initiated, it is judged that it affects national security, and it is not allowed to go public abroad.

Zheng Xuguang: “In the future, unless it is a relatively large-scale enterprise, an enterprise trusted by the party and the government, or a company with a wealthy background, it may become similar to a state-owned enterprise when it goes public. In this way, the party and the government can only I believed it.”

Another highlight of this new regulation is the establishment of a “network security review working mechanism”, which includes 13 government units including the CCP’s Cyberspace Administration of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Public Security Bureau, and the National Security Bureau.

The outside world believes that the continuous increase of the CCP’s cybersecurity censorship will inevitably adversely affect the operation and development of technology companies.

Xie Tian: “If this involves many, many companies, and many companies cannot be listed, they cannot raise funds overseas, and these efforts to make foreign exchange are also a blow. If these companies cannot be listed, it will be a blow to their own companies in China. Development is also a blow, so it will definitely have a negative impact on the Chinese economy.”

Zheng Xuguang, an economist based in the United States, said that the CCP’s new regulations are not only bad news for Chinese innovative companies, but also bad news for foreign capital.

Zheng Xuguang: “The support and investment of foreign capital to Chinese innovative companies may be a very serious consideration, because the probability of listing has been greatly reduced, possibly by more than 70% to 80%, then this capital risk It is very big, and many opportunities may be lost. Considering this level, a lot of money will not be invested in innovative companies in mainland China.”

In fact, after Chinese technology companies went public in the United States, there have been traces of cases of being suppressed by the CCP.

On June 30 last year, not long after Didi Chuxing was listed on the New York Stock Exchange, the CCP authorities successively conducted cybersecurity reviews on Didi, Manbang Group and BOSS directly on the grounds of “national security”.

Afterwards, Didi had to announce its delisting from the United States and transfer to Hong Kong for listing. And Didi’s share price plummeted after a series of sanctions from the CCP.

According to the third-quarter revenue announced by Didi Chuxing in 2021, the company has a huge net loss of more than 30 billion yuan.

Editor/Interview with Meng Xinqi/Changchun Post-production/Zhong Yuan

URL of this article: https://www.ntdtv.com/gb/2022/02/16/a103349518.html