Chinese Regulator to Allow Didi App to Return to App Stores
Chinese regulators are finishing up investigations into ride-hailing giant Didi Global Inc and two other firms, with the expectation that all three will be allowed back on domestic app stores as early as this week.
Along with Didi, logistics platform Full Truck Alliance Co and online recruitment services company Kanzhun Ltd have also seen their apps suspended, but with official promises coming out of Beijing of less internet regulation it appears the firms may be among the first to benefit from the new stance.
The news is still unofficial at present, with outlets only citing anonymous sources. Investors have responded well to the possibility though, with Didi’s US shares jumping 37% to $2.53 in morning trading whilst Full Truck and Kanzhun rose by 28% and 21% respectively.
The Cyberspace Administration of China (CAC) had ordered app stores to remove 25 apps operated by Didi last year as part of a wider crackdown which also involved Full Truck and Kanzhun. Accusations against the targeted companies have been vague, with officials citing national security and public interest reasons.
Whilst it is understood that the three companies will be allowed to recommence operations, they will have to make concessions to Beijing including offering 1% equity stakes to the state and giving the government a direct role in corporate decisions. It is also expected that they firms will receive financial penalties.