China is tightening restrictions on companies seeking to go to the public abroad in the midst of a wave of Chinese origin IPOS in the US. UU Regulators have launched the glove for local companies by announcing new privacy rules for those looking for Foreign stock market listings, according to Reuters. As a result, any company that has data on more than one million customers must face a review on how they handle this information to receive permission for a foreign OPI.
Regulators will analyze the risks that such data are affected, controlled or manipulated by external governments after flooming abroad. In a wider effort for companies to list locally, China is adding the two sets of rules that focus on data collection and data storage to their data security law and the law of protection of personal information.
Restrictions arrive in a privacy repression by Beijing. Regulators have previously shaken their sabers in Tiktok and LinkedIn for the alleged data collection violations. Last week, the authorities caused shock waves when ordering Giant Didi from Ride-Hailing that will eliminate their application from mobile stores as a result of their list of USA. UU., Causing her actions to collapse initially in a 20 percent.
With the United States, China’s tensions remain simply, the decision will probably press the pressure on the President Biden to increase the scrutiny of Chinese companies. Hostility created by Trump-Era policies has been relieved in recent months after the elimination of China Xiaomi and Luokung technology from military block lists, which prevented Americans from buying and maintained their actions. An expected defrosting in biden relationships probably fed a recent increase in the listings of the Chinese company. Last year, companies based in China raised $ 11.7 billion through 30 IPO in the US. UU, with more holmagards that occur this year.