China’s cyber-watchdog announced Friday that it will conduct an investigation into Didi’s cybersecurity. This follows earlier criticisms of Didi’s handling of customer data, which caused shares in the New York-traded company to plummet.
Two weeks ago, the regulator announced that it would investigate Didi’s ride-hailing business over security concerns. This inspection came just days after Didi raised $4.4 million and went public on New York Stock Exchange.
According to the Cybersecurity Administration of China’s Friday statement, the Cybersecurity Administration of China also released statements indicating that other Chinese government departments were involved in the investigation. These include the Ministry of Public Security and Ministry of Natural Resources, Ministry of Transport and State Taxation Administration.
The Cyberspace Administration of China did not provide any other information.
Didi was previously told to stop signing up for new customers while it restructured its collection of and handling information about its users.
China’s booming tech industries are under the control of the ruling Communist Party. The Party also wants to secure information about China’s economy and public, which it considers a strategic asset.