![]() Last week, the Cyberspace Administration of China (CAC) called for Didi to stop accepting new user registrations. public markets, and underscore tightening policies around data control and privacy by the Chinese government amid a broader crackdown on tech companies. investors from trading Chinese stocksĬhina’s strong-arm tactics mirror the Trump administration’s attempt to force Chinese telecom companies to delist from U.S. The Trump administration threatened to restrict Chinese companies access to financial markets the Chinese are trying to “force people to buy Chinese rather than go somewhere else,” Lewis said.įor more: Didi debacle riles lawmakers who seek to block U.S. Though the Chinese are loath to admit it, their actions copy U.S. Didi was a warning to other companies,” James Lewis, senior vice president at the Center for Strategic and International Studies, told MarketWatch. “The Chinese are leaning on companies like Didi not to go public. The company had been due to price its deal Thursday but has postponed its plans, according to Nikkei, citing two people familiar with the deal. Read also: A tale of two $2 billion Chinese IPOs headed in very different directionsĬhinese medical data group LinkDoc Technologyīacked by Alibaba Health Information, appeared to be the first victim on that impending list of Beijing’s clampdown on overseas listings. in the rest of this year, according to data compiled by Bloomberg. IPO market in the past year and a half, according to Dealogic - $13.6 billion in 2020 and $12.6 billion already this year - and more than 30 companies based in China and Hong Kong were expected to list in the U.S. Chinese companies have raised more than $26 billion in the U.S. IPO market, investors, and prospective Chinese tech companies could be disquieting. Anyone who wants to do business there has to sell its soul.” Has compromised its principles to do business in China to appease the government there. Regardless of where you’re listed, it almost doesn’t matter in terms of control in China,” Zarowin told MarketWatch. “China is becoming more and more totalitarian. Paul Zarowin, an accounting professor at New York University’s Stern School of Business, sees what is unfolding as a referendum on any tech company doing business in China. tech companies that deal in data while pursuing business in China, home to the world’s second-biggest economy and largest population, say economists. See: The increasingly complicated Apple-China relationshipĪpple’s conflicted condition in China highlights escalating concerns for U.S. We have to comply with the laws in the jurisdictions we operate in,” Cook replied. “Governments have the right to pass laws for their citizens. ![]() During Apple’s antitrust lawsuit with Epic Games Inc., an Epic attorney pointedly brought up a New York Times investigation that concluded Apple and its chief executive, Tim Cook, compromised individuals’ personal information to curry favor in China. tech firms operating there.”Īpple has gleaned 15% to 20% of its twelve-figure annual revenue totals from Greater China in recent years, but with increasing criticism. “It is squarely in the Chinese market - certainly for Chinese tech firms there, but also possibly U.S. market,” Harry Broadman, managing director at the Berkeley Research Group LLC, told MarketWatch. “The real story here has much less to do with an impact on the U.S. IPO market faces the loss of a big chunk of its pipeline. That attempt to do business in China confront a new reality and the U.S. But experts said the fallout could be felt more widely, as tech companies like Apple The effects were immediate for Chinese companies listed in the U.S., with stocks that went public with large valuations in recent years - like Alibaba Group Holding Ltd. BZ, the owner of an online recruitment platform, and Full Truck Alliance Co. Chinese regulators told the company to delay its IPO, according to a Wall Street Journal report, but shares of Didi debuted June 30, and plunged 20% in trading Tuesday and another 4% Wednesday after the news hit.Ĭhina is also probing Kanzhun Ltd. China’s version of Uber Technologies Inc. ![]() ![]() The latest move by officials in Beijing was dramatic, blocking new users from downloading the popular ride-hailing app Didi Global Inc.
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