Didi Global fined $1 billion by Chinese regulators; Jinping's purge process of tech sector finally complete

Chinese ride-hailing company Didi Global is set to be fined more than one billion dollars by the Chinese financial regulators. The Cyberspace Administration of China (CAC) came down heavily upon the cab-sharing service last year, days after it had gone public with its IPO (Initial Public Offering) at the US Stock Exchange.

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Reportedly, after the fine is unveiled, Didi Global will be allowed to add new users to its platform. When the ban was announced in June 2021, the Communist Party of China (CCP) forced the company to remove its app from the various app stores.

According to those privy to the matter, Didi is also expected to file for a fresh share listing but this time in Hong Kong. The company delisted itself from the US Stock Exchange last month.

The fine, expected to be around 4 per cent of Didi’s $27.3 billion total sales last year, will bring an end to a probe that was engineered by Xi Jinping as he went after nearly every big tech and internet company in China, including Alibaba and Tencent.

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It is reported that one of the major reasons for Xi's paranoia last year was that Didi was listed in the US under the precondition of sharing audit details with the US regulators. Under the CCP, Chinese companies have been restricted by Chinese law to share any kind of information with foreign entities.

Such was Xi's purge process that Alibaba founder Jack Ma disappeared from the public eye for several weeks after questioning the Chinese regulators. The Ant IPO was also tanked by Politburo as it sought to teach the tech sector a lesson. In the end, Xi Jinping came on top of it as the tech behemoths quietly accepted the diktat.

(With inputs from agencies)

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