Didi Chuxing’s trouble with China’s regulators raises questions about the ride-hailing giant’s future just days after it raised $4.4 billion in a U.S. initial public offering. It also could discourage other major Chinese tech companies from going public in the U.S.
On Sunday, the Cybersecurity Administration of China ordered Didi’s app to be removed from app stores, two days after it announced an investigation on the grounds of national security laws. Then on Monday, the regulator broadened the campaign when it announced probes of two other Chinese internet companies—logistics firm Full Truck Alliance and recruitment app Boss Zhipin—that also went public in New York recently.
