Chinese Regulators Halt New Signups for Major US-Listed Tech Firms
China's cyberspace regulator places Full Truck Alliance and Boss Zhipin under national security review and stops new user registrations following a similar crackdown on Didi Chuxing.
China's Cyberspace Administration orders Full Truck Alliance and Boss Zhipin to stop registering new users as the agency places both US-listed companies under a national security review. This action follows a similar crackdown on ride-hailing giant Didi Chuxing, which recently raised $4.4 billion in a New York IPO. Like Didi, both newly targeted firms operate app-based platforms and completed their US stock listings just last month.
The regulator forces local app stores to remove Didi's application over unspecified data violations, a move that the company admits negatively impacts its revenue in China. Didi's stock drops 5.3 percent on Friday, though the full market reaction to the Sunday app takedown remains unseen due to the US Independence Day holiday. A Didi vice president publicly insists that the company stores all domestic user data strictly on servers within China and does not pass information to the United States.
While the agency does not publicly detail the exact national security threats, the scrutiny centers on how these platforms store and share consumer information. This aggressive regulatory push coincides with China's new Data Security Law, which takes effect on September 1 and grants Beijing the authority to fine or shut down non-compliant tech firms. The probes mark a significant escalation in China's ongoing Big Tech crackdown, shifting the regulatory focus toward cybersecurity and national security justifications.