SHANGHAI (Reuters) – China’s cyberspace regulator on Tuesday announced the entry into force, on February 15, of new rules forcing digital platforms with the data of more than one million users to be subject to security analysis before a possible IPO abroad.
These rules are part of the strengthening of personal data initiated last year by the Chinese authorities, which adopted texts governing the collection and storage of data.
In a statement released via the social network WeChat, the Chinese Cyberspace Administration (CAC) said affected platforms wishing to be listed abroad should request a security analysis before submitting their request to foreign market regulators.
If the analysis reveals a risk to national security, then any overseas IPO of the company in question will be banned, CAC said.
These new measures were first presented last July by the CAC, which at the time expressed its willingness to verify that data would not be affected, controlled or manipulated by foreign governments after an IPO.
In addition, the CAC said Tuesday in a separate statement that a new regulation would come into force on March 1 on the use of recommendation algorithms, in particular to allow users of the platforms to stop this functionality.
(Report Brenda Goh; French version Jean Terzian)
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