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China – Regulators to target Kanzhun and other tech firms following crackdown on Didi Chuxing

05 July 2021

China’s internet watchdog, the Cyberspace Administration of China, is launching cybersecurity investigations into US-listed Chinese companies including Kanzhun Limited, whose core product is job board Boss Zhipin.

It comes after the removal the mobile app of Didi Global Inc.’s China service yesterday.

The Cyberspace Administration of China cited serious problems involving illegal collection of personal data and instructed Didi Chuxing, the company’s China business, to address the issues to “ensure the safety of the personal information of users.”

The latest order comes just two days after regulators blocked Didi Chuxing from adding new users as regulators review the company’s cybersecurity practices.

It also came a day after Didi’s vice president, Li Min, took to social media to rebut reports that Didi stored user data in the US.

Didi’s vice president, Li Min said, “Like many overseas-listed Chinese companies, Didi stores all domestic user data on servers in China. It is absolutely impossible to pass data on to the United States.”

The Cyberspace Administration did not specify the nature of the user-data privacy violation, how much time Didi would have to address the issue nor when Didi Chuxing’s app could return to the app stores.

In a statement to the BBC, Didi stated: "The company will strive to rectify any problems, improve its risk prevention awareness and technological capabilities, protect users' privacy and data security, and continue to provide secure and convenient services to its users.”

Meanwhile, the latest probes will hit newly listed companies including Kanzhun and Full Truck Alliance, a merger between truck-hailing platforms Yunmanman and Huochebang.

All three platforms have been told to stop new user registration during the period of investigation -- which was to "prevent security risks to national data, safeguard national security and protect public interest", according to the Cyberspace Administration of China.