Editor’s Note: This is the web version of our subscriber-only weekly newsletter, China Note, which includes a look at the week’s top stories and best reads from and about China. Subscribe to receive it by email every Wednesday. If you’re already a subscriber, adjust your newsletter settings to receive it directly to your email inbox.
New reports this week have revealed the developments that led to the Chinese internet regulator’s investigation into ride-hailing giant Didi Chuxing, which has triggered a sell-off of the group’s shares and had a ripple effect on the Chinese tech industry.
Investors were caught by surprise when the Cyberspace Administration of China, or CAC, announced an investigation into Didi over national security concerns, days after it went public in the United States. The group denied any prior knowledge of the probe, but sources familiar with the matter have pointed at a number of missteps by the company that led to its censure.