Beijing Wants 'affectionate' Ties With Internet Firms

China's cyberspace watchdog on Friday said it wants to build an "affectionate" relationship between internet enterprises and the government, in the latest verbal assurance to an industry still on edge after regulations began tightening in 2020.

The Cyberspace Administration of China said it is supportive of the sector's healthy development, and while implementing rules it wanted to create what it described as a "healthy, get-to-the-top, can-do entrepreneurial atmosphere".

The administration was among mainland regulators which in late 2020 launched a campaign targeting tech giants, which upended industry practices, set new rules on how the companies should do business, and also affected markets.

Tech firms have remained cautious, with many including the likes of giants Alibaba Group and Tencent Holdings cutting back on new investments and laying off workers.

Among some of the biggest issues that have worried investors include new rules that came into effect in February for Chinese firms with data on more than one million users to undergo a security review before listing their shares overseas.

Sun Weimin, head of the regulator's cybersecurity coordination bureau, said that the agency remained supportive of domestic firms seeking overseas listings, and that the review was to ensure that there was no data involved that could be abused by foreign governments.

There is also no final word on the ongoing saga of ride-hailing giant Didi Global, which was the subject of a probe that forced the ride-hailing leader to delist from New York within a year of its debut.

While Didi was fined 1.2 billion US dollars last month for violating data security rules, it is not clear whether or when its apps will be allowed to return to app stores, or if it can resume new user registrations.

The administration has said it is supervising Didi's rectification work, and that it would continue to work to remove hidden security risks and punish any behaviour that endangered national or data security. (Reuters)