China to allow Didi apps reinstatement

Monday 16 January 2023 12:19 CET | News

The Cyberspace Administration of China (CAC) has reportedly planned to allow Didi to reinstate its ride-hailing and other apps into domestic app stores.


As alleged by Reuters, this signals the fact that the two-year regulatory crackdown on the technology sector is coming to an end. Following the start of its regulatory troubles in 2021, Didi has been waiting to receive authorities’ approval to resume new user registrations and downloads for its 25 banned apps in China looking to resume normal business. 

The lift on the new user ban and app resumption for the enterprise’s flagship ride-hailing services and other business might happen ahead of the Lunar New Year, which starts on 22 January 2023. The one-week-long holiday period is believed to help Didi start gain new clients for its business and work towards bringing it back to normal.

Details on what the app reinstatement entails

The ban lift on Didi’s apps comes as Chinese policymakers are looking to restore private sector confidence and count on the technology industry to help stimulate economic activity, following the effects of the COVID-19 pandemic. China’s central bank is set to support private firms as part of steps to support the economy, while ‘easing a crackdown’ on tech companies, as advised by People’s Bank of China officials.

The restoration of the apps would signal Didi’s completion of its one-year and a half-long regulatory-driven rehabilitation and follows the USD 1.2 billion fine imposed on the company by the country’s cyber watchdog, Cyberspace Administration of China (CAC), in July 2022.

The Cyberspace Administration of China (CAC) has reportedly planned to allow Didi to reinstate its ride-hailing and other apps into domestic app stores.

As reported by Reuters, Chinese regulators led by the CAC, have started to push forward with Didi’s app resumption process in recent weeks, with the regulators having submitted a report on the matter to the top party leaders of the country and looking to receive approval in the days to come.

Didi’s regulatory issues

Launched in Beijing in 2012 and backed by investors of the likes of Alibaba, Tencent and SoftBank Group, Didi’s regulatory issues followed their 2021 US-stock listing that took place against the regulator’s will.

As a result of this move, Didi was ordered to have its 25 mobile apps taken down from app stores, new users’ registration suspended, and was also fined over data-security breaches. The company was also instructed to end its journey as a New York Stock Exchange-traded company.

Reuters reported that the firm had previously hoped that the US delisting and the penalty would end its regulatory issues, having expected to relaunch the apps following an update to ensure compliance. However, this was delayed due to China’s ruling Communist Party’s twice-a-decade congress and central leadership reshuffle and COVID-19 outbreaks across the country.

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Keywords: payments , commerce, regulation, digital payments, cybersecurity, compliance
Categories: Payments & Commerce
Companies: Didi
Countries: China
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