Chinese authorities will require internet giants to obtain permission to

Chinese authorities will require internet giants to obtain permission to invest or raise capital

According to Reuters sources, China’s Cyberspace Authority (CAC) has issued new guidelines that require major Chinese internet companies to obtain permission before investing in projects or raising funds for their efforts.

Credit: REUTERS/Thomas Peter

Image source: REUTERS/Thomas Peter

The new requirements reportedly apply to platforms with more than 100 million users or more than 10 billion yuan ($1.58 billion) in revenue. Internet companies in sectors included in the “Negative List” published by the National Development and Reform Commission (NDRC) last year must also apply for a license.

It is not yet clear what kind of investment or funding could influence the innovation. A senior technology industry source expressed concerns that these requirements could apply to private market investments, such as B. private financing rounds before the IPO.

China regularly updates a “negative list” that bans foreign investment in sectors such as compulsory education, the press and rare earth minerals extraction. Late last year, the NDRC issued a requirement that companies in such sectors must obtain regulatory approval before listing their shares outside the country.

Also from February 15, Chinese companies with data from more than 1 million users will have to undergo a security check before listing their shares overseas.



About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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