China imposes tighter rules for overseas listings - Mobile World Live

China imposes tighter rules for overseas listings

04 JAN 2022

The Cyberspace Administration of China (CAC) today (4 January) unveiled new regulations requiring internet companies with more than 1 million users to apply for a cybersecurity review before listing overseas, as the government continued to tighten rules on the tech sector.

The new cybersecurity review measures, which come into force 15 February, were approved by 13 agencies, including the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security, the Ministry of National Security and the Ministry of Finance.

In a translated statement, CAC explained a network security review was necessary to “ensure network and data security, and maintain national security”.

The Cybersecurity Review Office has ten working days after receiving material from a network platform operator to determine if a more comprehensive probe is required.

In a separate document, CAC said new regulations for recommendation algorithms, drafted in August and requiring companies to inform users how they recommend content and offer an opt-out option, would go into effect 1 March.

Over the past 13 months, Chinese authorities increased scrutiny of domestic technology companies and imposed stricter regulations covering overseas IPOs, competition, user privacy and child protection.

In late November, the government demanded taxi-booking company Didi Chuxing delist from the New York Stock Exchange over data security concerns.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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