Chinese authorities lifted the 18-month ban on new user registrations for the transportation company and ride-hailing application Didi Chuxing. The company vowed to the authorities on taking effective measures to secure the platform's facilities and big data.

(Photo : GREG BAKER/AFP via Getty Images)
A taxi driver uses the Didi Chuxing app while driving along a street in Guilin, in China's southern Guangxi region on May 13, 2016. - Apple has invested 1 billion USD in Chinese ride hailing app Didi Chuxing, the Beijing company said on May 13, as it vies with bitter US-based rival Uber for market share in China. 

Lifting the 18-Month Ban

Didi Chuxing is set to resume new user registrations after the authorities gave the company the green light to operate. Based on a report from Reuters, this will be the end of the 1 and 1/2 years of halting customer enrollment and new downloads.

"Our company has earnestly cooperated with the country's cybersecurity review, seriously dealt with the security problems found in the review and carried out comprehensive rectifications for more than one year," the company said in a statement.

Didi added that effective measures will be implemented to ensure customers of platform safety and data security. At the same time, national cyberspace security will be safeguarded. 

This will make the company restore its confidence and continue operating to help spur economic activity that has been affecting the country and the world.

University of Hong Kong's Faculty of Law Associate Professor Angela Zhang described this news for the company as the mark of a course correction for the government that is long overdue. 

She added, "We are now seeing a mobilization of bureaucratic efforts to revive the Chinese tech sector from various fronts."

Halting New Registrations and Downloads 

Didi Chuxing has been known as one of the world's largest ride-hailing companies in the market. In 2021, the company raised $4.4 billion from its initial public offering on the New York Stock Exchange under the name Didi Global. 

Just days after the filing, South China Morning Post reported that the Cyber Security Review Office investigated the company on the grounds of national security. During this time the authorities were triggered by the sell-off in Chinese tech stocks in New York and Hong Kong. 

For 18 months, Didi Chuxing's new user registrations have been halted due to an investigation. The company's application also remained unavailable for download. 

25 mobile applications were ordered by the Cyberspace Administration of China to be taken down from app stores, registration of new accounts was suspended, and received a $1.2 billion fine over data-security breaches. 

The fine was paid last year and was known as the largest regulatory penalty imposed on a Chinese tech company since tech giants like Alibaba and Meituan were fined billions of dollars. 

Also Read: DiDi, China's Version of Uber, Set for One of the Biggest IPOs of the Year: What You Should Know

As per Financial times, the lifting of the ban comes as Beijing revamps its efforts on boosting the economy of the country after three years of restrictions because of the splurging cases of COVID-19. 

The China Banking and Insurance Regulatory Commission stated that only minor issues were left to be resolved.

He added, "the government would help its internet groups fully display their capabilities in bolstering growth, job creation and global competitiveness."

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