Posted Jul 20, 2022, 10:38 AMUpdated on Jul 20, 2022 at 10:57 AM
Beijing could put an end to the pressure exerted on its tech giants, but by making them pay a high price. According to the “Wall Street Journal”, a first sign of appeasement could occur in the coming days with the dropping of charges against Didi. But before, the local Uber should pay more than 1 billion dollars in fines, according to the economic daily. And even 1.28 billion, according to Reuters, or 4.7% of 2021 turnover.
For Didi, lightning struck in June 2021. The leader in car reservations in the most populous country in the world had maintained fundraising in the United States, despite the rivalry between Beijing and Washington. Furious, the Chinese authorities immediately launched an administrative investigation against Didi, in connection with his collection of personal data.
The Didi application accessible again
According to the “Wall Street Journal”, it is this investigation that should result in this colossal fine; the largest in the country since that of 2.3 billion dollars against Alibaba. Once the fine has been paid, Didi will once again be accessible to new users, says the American daily, without citing sources. Reached by AFP, Didi did not react immediately.
Last year, in the wake of the administrative investigation, the Chinese authorities had banned the download of the application but the followers of Didi could still continue to use it. Under pressure from Beijing, Didi had also had to announce in December its hasty withdrawal from the New York Stock Exchange, after only five months of listing.
A sign of appeasement
This sanction, as heavy as it is, is nevertheless perceived as a positive signal for the tech giants, mistreated by Beijing for almost two years. Wednesday morning, the action of the champion of e-commerce Alibaba thus gained more than 4% on the Hong Kong Stock Exchange. The internet and video game giant Tencent took more than 2.5%.
In a context of heightened tensions with the United States, China has undertaken to reduce the airfoil of its technological giants. Some large companies must now obtain special authorization, issued by the Chinese internet regulator, before listing abroad.
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