Chinese authorities have sent Didi offices to conduct a security investigation

China’s intelligence service and six other government departments have taken up the challenge of appointing investigators to Didi Chuxing’s office to conduct a security investigation.

The program of see also, which sent Didi’s deficit down when it was first announced after the company had initially released US $ 4.4bn earlier this month, it is the first time that the Ministry of State Security has publicly announced its temporary holdings.

The Cyberspace Administration of China, which oversees cyber security monitoring at Didi, said on Friday that the study would also include police, tax authorities, market regulators, and industry regulators in environmental and logistics.

“The announcement by the agencies concerned is a warning to other companies not to undermine national security and Beijing’s efforts to make the project public,” said Feng Chucheng, a technical analyst at Plenum. ai.

The growth of Didi’s investigation, which the CAC announced two weeks ago, will increase fears among Chinese stockbrokers and reduce their interest in foreign IPOs.

The CAC followed the Didi security review and a number of sanctions were submitted share price down 20 percent next week his IPO. The commission also issued new rules banning companies with more than 1m users from being named abroad until they have received a permit from the government after a thorough investigation.

The CAC did not specify the details of its risks, in light of the increased security and national security risks. Before the IPO, CAC had it asked Didi to fix it its map display, fearing that it might unwittingly reveal difficult areas, such as war zones, people familiar with the subject.

But there is no evidence that confidential information has been released. Didi’s vice president Li Min has responded to the media’s false claims that it was “impossible” for the company to provide information to the US.

Didi’s research is also the first in Beijing to use a new method to monitor cyber security. For more than a year, the system was designed to focus on corporate security rather than data protection.

What has not happened in Didi’s case and the lack of information has put the company in an undisclosed location, legal experts said.

“It’s very unusual. There have been difficulties in pursuing them lately, “said Xu Ke, chief of the online law firm at the University of International Business and Economics in Beijing.

The number of organizations involved also increased the risk of non-compliance and temporary monitoring, while Didi was barred from signing new users.

Under the rules of cyber security monitoring, initial evaluation must be completed within 60 working days, or three months. If the various agencies do not agree on their views, a special review should be instituted, which lasts for another 45 business days or beyond.

“All supervisors are present, which means that firstly, this review will be completed, and secondly, it will not be temporary,” said James Gong, a lawyer at Herbert Smith Freehills.

Kendra Schaefer, a technical researcher at Beijing in Trivium, said: “It is well known in the law that there are a lot of questions about cooperation and the many cooks in the kitchen.”

Schaefer added: “The Ministry of Homeland Security is in good shape. When you define the whole definition of national security, this is what happens. ”

Additional reports of Nian Liu in Beijing