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Chronicles

The story behind the story

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Chinese ride-hailing giant Didi says regulators have lifted a ban on new user registrations, signaling an end to a longrunning regulatory crackdown

China's ride hailing giant Didi Global said in a statement on Monday that it would be allowed to resume new user registration, after a more than year-long ban that curbed its growth.

Reuters

Context & Ripple Effects

Didi’s registration freeze began with the cybersecurity review that barred new-user sign-ups in 2021, turning the company into a marker for the reach of China’s technology crackdown. Reports that the wider probes into Didi, Full Truck Alliance and Kanzhun were nearing conclusion had already pointed toward an off-ramp.

The immediate precursor was a report that Didi’s apps could return to app stores as soon as the following week. Restored registrations removes the growth constraint that remained central to Didi’s operating position even as its investigations moved toward closure.

First-order effects

  • Didi can again acquire riders and other users in China, ending the ban that had curtailed its growth for more than a year.
  • Chinese regulators convert an anticipated app-store reopening into a concrete restoration of Didi’s customer-onboarding capability.

Second-order effects

  • Didi’s domestic ride-hailing competitors face renewed competition for user acquisition as Didi regains a channel that had been closed since the cybersecurity review.
  • For Full Truck Alliance and Kanzhun, whose probes were also reported to be nearing conclusion, Didi’s reopening supplies a relevant regulatory precedent for operational normalization.

Third-order effects

  • If similar reopenings follow, China’s technology enforcement cycle will look less like an open-ended shutdown risk and more like a process in which investigations can eventually restore core platform functions.
  • Didi’s return as a regulatory bellwether shifts attention from whether large platforms can operate to which conditions regulators attach to resumed growth.

The trend: China’s technology crackdown is entering a normalization phase in which regulators restore core platform functions after prolonged investigations.

Discussion

  • @marietjeschaake @marietjeschaake on x
    Alibaba has learned from American Big Tech ↘️ https://giftarticle.ft.com/...
  • @angelazhanghk Angela Zhang on x
    Given the power imbalance between business and the state in China, Chinese tech giants have no choice but to resort to informal institutions to lobby for support. Unsurprisingly academics play an important role here. https://www.ft.com/... @QianerLiu
  • @edourdoo Eddie Du on x
    Alibaba has been paying academics to lobby Chinese authorities to relax regulations and rehabilitate its reputation as the ecommerce group attempts to navigate Beijing's tech crackdown. https://www.ft.com/... https://twitter.com/...
  • @henrysgao Henry Gao on x
    Interesting story from @FT on Alibaba & academic lobbying. not sure which academics they've interviewed, but I guess the best example of academic influence must be Alibaba enlists academics in lobbying effort to restore reputation https://www.ft.com/...
  • @niubi Bill Bishop on x
    Alibaba enlists academics in lobbying effort https://www.ft.com/... “Regulators' knowledge of internet companies did not stay up to date with their development, so they called on academics to accelerate their learning curve,” said a Beijing-based researcher paid by Alibaba