The Cyberspace Administration of China (CAC) will implement new rules that require a cybersecurity review for tech firms planning to go public overseas, reported Reuters.
Platforms with more than 1 million users will be subject to this security check from February 15, while another set of rules on their algorithms will take effect on March 1.
These moves tighten the government’s grip on tech companies, which have undergone repeated and heightened scrutiny from regulatory bodies in 2021.
The Chinese government earlier mulled blocking tech firms with plans to list abroad via variable interest entities. Last week, China’s National Development and Reform Commission announced that some sectors like internet news and publishing must get regulatory clearance before listing on foreign exchanges.
See also: China’s link-blocking ban: panacea or Pandora’s box?
Editing by Collin Furtado
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