Home » Analysis: Didi’s heavy fine may be related to Beidaihe meeting | Didi Chuxing | Xi Jinping | 20th National Congress of the Communist Party of China

Analysis: Didi’s heavy fine may be related to Beidaihe meeting | Didi Chuxing | Xi Jinping | 20th National Congress of the Communist Party of China

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Analysis: Didi’s heavy fine may be related to Beidaihe meeting | Didi Chuxing | Xi Jinping | 20th National Congress of the Communist Party of China

[The Epoch Times, July 22, 2022](Reported by Epoch Times reporters Ning Haizhong and Yi Ru) On July 21, more than a year after being investigated, China’s online car-hailing giant “Didi Chuxing” (hereinafter referred to as Didi Chuxing) ) was officially fined 8.026 billion yuan. Officials say Didi is involved in excessive collection of user information and other issues. Analysts believe that the timing of Xi Jinping’s purge of Didi before the Beidaihe meeting has an important connection with the infighting of the CCP’s top leaders.

According to a report from the Cyberspace Administration of China on July 21, Didi has 16 illegal facts, mainly in 8 aspects, such as illegal collection of screenshot information in users’ mobile phone albums; excessive collection of user clipboard information and application list information; excessive collection of information Passenger facial recognition information, “home” and “company” taxi address information, etc.

In addition to the huge fine of 8.026 billion yuan imposed on Didi, Didi Chairman and CEO Cheng Wei and President Liu Qing were each fined 1 million yuan. The fine imposed on Didi this time is second only to the 18.228 billion yuan fined by Alibaba in 2021.

Didi Chuxing was listed in the United States on June 30 last year. Just two days later, it was suppressed by a series of censorship by the CCP’s Cyberspace Administration on the grounds of data security. Completely removed.

On June 2, 2022, Didi announced that it will officially delist from the New York Stock Exchange (NYSE) 10 days after applying to the U.S. Securities and Exchange Commission (SEC).

Taiwan’s general economist Wu Jialong told The Epoch Times on July 21 that one of the CCP’s punishments was the CCP’s financial problems. It took Didi to operate, saying it violated regulations and issued a fine of more than 8 billion yuan. In the future, this can be used as a punishment to others. A standard practice for large online platforms to ask for money.

“The second is that the CCP is now entering the final political game of the 20th National Congress of the Communist Party of China. There are definitely political motives, and it is closely related to the current political situation.”

In a few months, the 20th National Congress of the Communist Party of China will be held on whether Xi Jinping will be re-elected. It is expected that before the end of this month, the top-level Beidaihe vacation meeting of the Communist Party of China may also be held in secret. This time period has always been a time for power struggles involving retired CCP bosses.

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Wu Jialong said that some of the major shareholders behind Didi are the elites of the CCP, including the second and third generations of red, who may be targeted by Xi Jinping. These major shareholders are more inclined to oppose Xi and tend to Jiang faction, so the purge of Didi It is the game before the 20th National Congress of the Communist Party of China, especially before the Beidaihe Conference, that Xi Jinping wants to exert pressure on the Jiang faction or other factions.

“It’s been more than a year since the investigation, and the issuance of a ticket at this time is definitely a warning to the monkeys. It has a political effect. He can be earlier and later. Why did he choose the Beidaihe meeting? Why did he choose late July?”

Wu Jialong said that on the one hand, the authorities have to play a regulatory role in the industry itself, and on the other hand, they have to declare politically, “I, Xi Jinping, fight with you when necessary, you have to be careful, there is such an overtone.”

Li Hengqing, an economist based in the United States, also told The Epoch Times on July 21 that Xi Jinping’s attack on Didi this time may have political considerations and is a shock.

He said that most of China’s private enterprises are the white gloves of the powerful. “Didi is said to be more closely integrated with the powerful and powerful of Jiang Zemin’s faction. The Liu Chuanzhi family is relatively close to the senior officials of the Jiang family in the past.” Liu Qing, the president of Didi, is the daughter of Liu Chuanzhi, the founder of Lenovo Group.

According to public reports, Didi Chuxing’s major shareholders Alibaba, Ant Group, and Tencent are themselves involved in various factions of the CCP and princelings, but mainly Jiang Zemin’s faction. Didi’s major shareholders, state-owned China Life Insurance and CITIC Capital, belong to Liu Lefei, the son of Liu Yunshan, a former standing committee member of the Jiang faction. Another major shareholder of Didi, “China Gold Jiazi”, is affiliated with China International Finance Corporation, and former CEO of CICC Zhu Yunlai is the son of former Premier Zhu Rongji.

The CCP wants Internet giants to listen to the party

The authorities’ purge of Didi, on the other hand, is also considered to be a manifestation of the CCP’s turn to the left in recent years, and its increased crackdown on the private economy in order to maintain political stability.

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Wu Jialong told The Epoch Times that the CCP’s industrial policies and industrial norms lack transparency and stability. Although many practices are reasonable, such as network security and information security, there is no room for appeal in the punishment process, and the process and spirit of the rule of law are lacking.

“So for big companies, private companies and foreign companies, they think that the CCP authorities are very untrustworthy and lose confidence in the (CCP) system. Foreign high-tech investment, as well as investment related to the Internet, people will not dare to do it. This will have an impact on other related e-commerce, logistics, and cash flow industries.”

Li Hengqing said that the CCP always does not really care about the economy when the regime is in crisis, but to ensure the stability of the regime. The CCP is not at all confident about the digital economy, and is more concerned about cybersecurity, that is, to listen to the party’s words.

He said that when Didi was listed in New York, there had already been a huge conflict with the Chinese authorities, and the incident had also made international investors disappointed with the Chinese Communist Party, such as Masayoshi Son, chairman of Japan’s SoftBank, which invested in Didi.

When the CCP established the National Anti-Monopoly Bureau on November 18 last year, the outside world believed that it was not targeting central and state-owned enterprises that are themselves monopolies, but showed a move to further crack down on private giants.

On November 20, 2021, authorities imposed heavy fines on several Chinese tech giants, including Tencent, Alibaba, Baidu, Suning.com, JD.com and Didi, for violating the Anti-Monopoly Law. A total of 43 cases have been filed for investigation, and the incident dates back to 2012. The companies involved were fined RMB 500,000.

Is the CCP protecting privacy or violating privacy?

After Didi was severely fined, the Cyberspace Administration of China responded to the media, saying that Didi violated the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law. Heavily punished”.

Wu Jialong told The Epoch Times that the purge of Didi Chuxing is related to the CCP’s concern that the intelligence system operations would be leaked, because the data involved in this industry has intelligence value.

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For example, he said, “When the CCP conducts cyber hacking overseas, those hackers call a car to the headquarters for a meeting, and Didi Chuxing’s data shows that there are several places. People suspected of hacking all call a car to one location, so this location It was revealed that this location is the intelligence headquarters or the spy headquarters or something.”

Wu Jialong said that when these sensitive people called for a car, Didi records where they got on and where they got off. The CCP is worried that the information may be obtained by the United States. Moreover, not only spies, but also some political figures in the CCP. In order to avoid being tracked, they will also call for a car, and such information may also be leaked. Therefore, the CCP opposes Didi’s listing in the United States.

Wu Jialong also said that the so-called protection of data security by the CCP has a dual nature. On the surface, it is to protect the common people, but it is actually used for social surveillance. For the CCP, social surveillance and stability maintenance are absolutely the most important. Because the security of political figures may also be involved, such as beheading operations, assassinations, etc., the investigation of Didi has risen from data security to national security and intelligence security.

Li Hengqing said that according to the 16 cases that Didi has been punished, it is of course wrong to say that Didi collects users’ personal information excessively. In the United States, personal medical information is protected by law. But the most important thing is how to use this information. The institutions and individuals in the United States that collect information have a bottom line. But in China, only state officials are allowed to set fires, and people are not allowed to light lights. For example, the Shanghai public security system collects information on 1 billion Chinese citizens, including personal political opinions, which are part of its collection.

“This is a black regime. The public’s personal information and privacy fall into the hands of the CCP. They can use this information arbitrarily to endanger public security. For the security of his rule, he can invade the public’s privacy at any rate, which is very scary.” Li Hengqing said .

Responsible editor: Fang Xiao#

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