NEW DELHI: China proposed new rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review, a move that would significantly tighten oversight over its internet giants. Companies holding data on over 1 million users must now apply for cybersecurity approval when seeking listings in other nations because of the risk that such data and personal information could be “affected, controlled, and maliciously exploited by foreign governments”, the cyberspace administration of China said in on Saturday. The cybersecurity review will also look into the potential national security risks from overseas IPOs, it said.
Saturday’s move is one of the most concrete steps taken yet to restrain the ability of technology firms to raise capital in the United States through a so-called variable interest entity model that the likes of Alibaba to Baidu and Didi have adopted. The Chinese regulator is seeking feedback on the proposed rules, which apply to listings in foreign countries specifically, before implementation.
View More | Source: Times of India