China’s Tech Crackdown Has A New Battleground

China had started a new government battleground with the other technology giants in the country. Looking to target their collection and use of data. On Monday, the Cyberspace Administration of China (CAC) also opened a cybersecurity probe into U.S.-listed Boss Zhipin and subsidiaries of Full Truck Alliance.

Beijing and the Chinese government is known to be on this rampage of the crackdown on the technology giants. This has been continuously going on for the past few months, and every one of the technology companies is on the edge of their seats.

China's Tech Crackdown Has A New Battleground

The main reason that they are down on the tech giants on this matter is because of the privacy issue and the data collection stoppage that the Chinese government is highly imprudent on. Since the 2017 Cybersecurity Law, China has had some regulations around data.

“We can definitely expect to see a lot of user data crackdowns as soon as those two laws are passed,” Schaefer said. “This is definitely another front (of regulation).”

“You can’t have a digital economy without strong data privacy protection. And the digital economy is propping up China’s slowing growth,” Kendra Schaefer, a partner at consultancy Trivium China, said.

“It started in April and they (the Chinese government) have given the companies over 100 items of compliance requirements covering many aspects, antitrust, data, advertisement, pricing, and lots of things,” a lawyer that works with Chinese technology firms on compliance told CNBC.

“They (the government) have given them (the companies) so many instructions and clues asking them to improve their compliance system for all of those aspects,” said the lawyer, who wished to remain anonymous due to the ongoing and sensitive nature of the compliance work.