Hong Kong companies that consider going public are required to undergo a cybersecurity test. This obligation only applies if the company processes data that could endanger national security. It is still unclear what exactly the Chinese government means by this.
This is evident from a draft proposal published on Sunday by the Chinese regulator, Bloomberg writes.
New legislation against tech companies entered into force
The Chinese government and Chinese technology companies have been battling each other for some time. Last summer, Xi Jinping, the president of the People’s Republic of China, presented a series of proposals to regulate Chinese tech companies. For example, there was a ban on fake reviews, intellectual property is better protected and tech companies such as Tencent and Alibaba are not allowed to make it technically impossible for customers to use each other’s services.
At the beginning of this month, a new law came into effect to better safeguard the online privacy of Chinese internet users. Since then, technology companies have been legally obliged to improve the
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