Two Chinese companies leave US: China Telecom told it can't stay, DiDi gets out of Dodge
- Reference: 1638534369
- News link: https://www.theregister.co.uk/2021/12/03/two_chinese_companies_leave_usa/
- Source link:
On Friday, DiDi Global [1]announced it would delist from the New York Stock Exchange in favour of Hong Kong after a mere five-month presence.
The mobility technology platform floated on the NYSE on 30 June, raising $4.4bn, making them the biggest IPO of a Chinese company on an American exchange since Alibaba in 2014.
[2]
But not everyone was happy as DiDi had [3]ignored a request from Chinese regulators to maybe not do that. And less than a week later, Chinese ride-hailing app DiDi Chuxing was [4]removed from local app stores on the grounds that it violated data protection laws.
[5]
[6]
The Cyberspace Administration of China (CAC) then ordered the removal of more mobile apps – 25 in total – citing national security concerns, and affecting DiDi Global's bottom line.
[7]China to create workers' paradise for ride share drivers
[8]Beijing wants to level up China's software industry, with an emphasis on FOSS
[9]Lloyd's of London suggests insurers should not cover 'retaliatory cyber operations' between nation states
[10]Warning: China planning to swipe a bunch of data soon, so quantum computers can decrypt it later
By late October, the CAC was [11]pressuring DiDi and other companies to list in Hong Kong. The company is now complying.
As for China Telecom, the US Court of Appeals for the District of Columbia denied China Telecom's last-ditch bid to retain its Federal Communications Commission (FCC) licence on Thursday.
"Petitioner has not satisfied the stringent requirements for a stay pending court review," read the [12]court document [PDF].
[13]
The FCC [14]terminated China Telecom Americas Corporation's authority to provide telecom services within the US on 26 October, citing national security risks such as the telco's potential for exploitation, influence and control by the Chinese government, potential espionage, and other harmful activities.
The carrier's [15]appeal was based on the grounds that the FCC had rejected its request for a hearing and that it didn't pose an imminent threat to US national security.
China Telecom must comply with the 26 October orders to end US services by early January. ®
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[1] https://www.businesswire.com/news/home/20211202006040/en/DiDi-Announces-Recent-Developments
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YaqhpedKI5UWxzGJQFbL3wAAARQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2021/07/05/didi_the_ridesharing_platform_that/
[4] https://www.scmp.com/tech/big-tech/article/3139786/china-takes-didi-app-stores-two-days-after-beijing-announces
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YaqhpedKI5UWxzGJQFbL3wAAARQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YaqhpedKI5UWxzGJQFbL3wAAARQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2021/12/02/china_rideshare_regulations/
[8] https://www.theregister.com/2021/12/01/china_five_year_software_plan/
[9] https://www.theregister.com/2021/11/30/lloyds_london_cyber_insurance_clauses/
[10] https://www.theregister.com/2021/11/29/china_quantum_ai_offensive/
[11] https://www.reuters.com/technology/chinese-regulators-suggest-hong-kong-listing-didi-wsj-2021-10-21/
[12] https://s.ipvm.com/uploads/24d2/254d/China_Telecom_Americas_Corporation_v_FCC_et_al__dccae-21-01233__208380950.0.pdf
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YaqhpedKI5UWxzGJQFbL3wAAARQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2021/10/27/china_telecom_booted_out_of/
[15] https://www.theregister.com/2021/11/16/china_telecom_us_emergency_lawsuit/
[16] https://whitepapers.theregister.com/
Quacks like a duck but it ain't a duck, it's Winnie the Pooh!
Two Chinese companies combines leave US
There I fixed that for you.
It's like East Germany listed its Industrieverband Fahrzeugbau on the US stock exchange during the cold war. That wouldn't fly then. But communists found a nice little trick - they started calling their government departments as "companies" and with some help of the Yuan, Western governments turned a blind eye.
They should have kicked China Telecom out ages ago after their MULTIPLE redirection of internet traffic via BGP misrouting into china.
Once is a cockup. Multiple times is grounds for revocation of licence and severe fines.
It's China Telecom, obviously when they fsck up their BGP, it goes through their network, in China.
When a US company does the same (and plenty do), it goes through the US instead.
Obviously the bigger the networks, the more errors are made, since ultimately, it's human beings doing those operations.
Revocation of license, do you mean that their government seizes all their network equipment and gives it to another company to operate, in the blink of an eye? Even in China, I don't quite see it working well, and in countries like the US, I really don't expect that to be a welcome idea.
Royal Cockup
Meanwhile Wall St. run their own foreign policy. Today in WSJ
Citigroup Applies for China Securities License
Wall Street bank joins JPMorgan, Goldman Sachs and others in seeking a deeper foothold in the country
More stimulus and pension fund money in their pockets than they know what to do with, so they will invest in Xi's 5 year plan.
What does this have to do with the article? The CPP doesn't want Chinese companies getting investment money IN the US where they will be subject to US laws. (The US has recently tightened booking rules for Chinese companies - c.f. "EXCLUSIVE SEC gives Chinese companies new requirements for U.S. IPO disclosures", Reuters). The effective US reaction to this, led by Wall St., is to then take the money that would have purchased Chinese IPOs and stocks in the US, and instead purchase them in China, under CPP rules and regulations. Brilliant!
However badly the CPP mangles the Chinese economy through ham fistedness, arrogance, and cruelty, it is still possible the CPP will out-maneuver the arrogant and shallow-clever yet deeply-stupid socially inbred Wall St. US "meritocracy" (mediocracy?), and therefore the US.
(* And remember Sept 2017 when Goldman bypassed US sanctions on Venezuela to lend $2.8 to Maduro? I'm not commenting on the good/bad of that, just that Trump and the Maduro hating and sanctioning right let that slip by with barely a whimper, just because - Goldman.)
"National security concerns"
ie "not doing what you're told".