Chinese regulators have started their first cybersecurity review to date with the on-site inspection of vehicle rental firm Didi Chuxing’s headquarters, SCMP reported.
- The on-site cybersecurity review is led by a task force that includes Cyberspace Administration of China (CAC), the Ministries of Public Security, National Security, Natural Resources, Transport, and the State Administrations for Market Regulation, and of Taxation.
- The inspection comes after two weeks the CAC said it would conduct a cybersecurity audit on Didi after the company pushed for an initial public offering at the New York Stock Exchange without full consent. It generated $4.4 billion from the listing.
- Analysts believe the unprecedented involvement of seven ministries in the investigation indicates that the review will be comprehensive, and could possibly include antitrust concerns and mapping information security.
The cybersecurity review is expected to take up to 45 working days, excluding the time spent to prepare the necessary documents. The review period may also be extended.
DIDI is down 3.48% premarket.