China's cyber police desires "warm" relationships with indigenous internet companies

19 Aug 2022 , 12:06 PM

In the latest rhetorical reassurance to an industry already on edge following a protracted and brutal regulatory crackdown, a senior official from China’s cyberspace agency said  that the country wants to foster an “affectionate” connection between internet firms and the government.

The CAC was one of the Chinese authorities who, in late 2020, began an unprecedented campaign against the nation’s digital companies. The campaign threw into question long-standing corporate conventions, established new guidelines for how corporations should conduct themselves, and roiled the markets, devaluing the companies by billions of dollars.

Many businesses have remained cautious, with many, including Alibaba Group and Tencent Holdings, reducing new investments and laying off thousands of workers.While regulators, facing a slowing economy, have not announced new rules this year at the pace they did last year, they have continued to tighten existing regulations.

One of the main concerns that have alarmed investors is new regulations that went into effect in February requiring Chinese companies with data on more than 1 million customers to undergo a security examination before listing their shares on foreign exchanges.

The agency continues to support domestic companies seeking listings abroad, according to Sun Weimin, head of the regulator’s cybersecurity coordination department, and the review is to make sure that there is no data involved that might be misused by foreign parties.