Shanghai: Cyberspace China Regulator said on Saturday any company with data for more than 1 million users must undergo a security review before registering its shares abroad, expanding Clampdown on a large “economic platform”.
The security review will put the focus on the risk of affected data, controlled or manipulated by foreign governments after lists abroad, said the Cyberspace China Administration (CAC), posted the rules proposed on its website.
China’s Cyberspace regulator imposes more stringent restrictions on data collection and data storage.
The authorities also wider encourage companies to register domestically.
Two sets of new regulations, data security laws and personal information protection laws, each of which includes data storage and data privacy, is set to get into force this year.
Saturday announcements will also ask the company to submit the IPO material they plan to be reviewed.
The security review, according to CAC, will consider the national security risk as “the risk of supply chain disorders due to political, diplomatic, trade factors and other factors,” and the risk of key data “is usually used by foreign governments after foreignering.” CAC is looking for public opinion about the proposed rules.
Notifications came after the Chinese authority launched a giant giant giant probe Didi Global Inc.
for allegedly violating user privacy, just days after listing in New York.
Didi shares fell 20% for news probes, and the company said the income would be affected.