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China Announces New Cybersecurity Industry Strategy

Men look at a smartphone in Beijing on Monday, July 5, 2021. Days after China's largest ride-hailing app Didi Global Inc. went public in New York as the biggest Chinese IPO in the U.S. since Alibaba's 2014 listing.

China’s technology ministry Monday announced a three-year action plan to develop the country’s cyber-security industry, which it estimates will be worth more than $38 billion by 2023, according to Reuters.

The new strategy by the Ministry of Industry and Information Technology is being unveiled as Beijing tightens its grip on the country’s technology sector, underscored by its regulatory probe of ride-hailing giant Didi Global.

The company was valued at $68 billion after its June 30 initial public offering, or IPO, on the New York Stock Exchange.

But Chinese regulators launched a cybersecurity review of the company and said new users would not be allowed to register during the review, sending Didi Global share prices tumbling. The Cyberspace Administration of China then ordered Didi’s app removed from domestic mobile app stores.

The agency has also ordered two other tech-based companies, Uber-like trucking startup Full Truck Alliance and Kanzhun, which connects job seekers and hiring enterprises via a mobile app, to suspend user registrations and submit to security reviews, citing risks to “national data security.”

The two companies, like Didi Global, had also recently issued IPOs on U.S. stock exchanges.

Some information for this report came from Reuters, CNBC, and the New York Times.