China’s probe into Didi is aimed at addressing national security risks arising from New York listing, Xinhua says

China’s cybersecurity probe into Didi Chuxing is aimed at addressing possible national security risks stemming from the ride-hailing giant’s overseas listing, the official Xinhua news agency said in a report on Sunday.

This is the first time that an official Chinese media outlet has provided further details on why Beijing launched an investigation into Didi, which began just two days after the company’s US$4.4 billion June 30 initial public offering in New York. At the time, the Cyberspace Administration of China (CAC) said that the investigation was carried out in an effort to “prevent data security risks and protect national security”.

Sunday’s Xinhua report said that China’s new rules on critical information infrastructure facilities as well as probes into Didi, Full Truck Alliance and Boss Zhipin, were aimed at “effectively preventing potential national security risks relating to procurement, data processing and overseas listings”.

The South China Morning Post reported earlier that Chinese authorities initiated the probe because Didi had “forced its way” to a US listing in the face of government concerns. CAC said in a short statement on July 4 that Didi’s app, often referred to as the Uber of China, had seriously violated the country’s laws and regulations through the improper collection and usage of user information, without providing further details.

There has been no update on China’s high-profile Didi investigation since then. Didi has said it is cooperating with regulators. In July, China’s cybersecurity watchdog also launched probes into Full Truck Alliance and Boss Zhipin, both of which also listed in New York.