On July 2, 2021, China’s top ride-hailing platform Didi Chuxing was probed for cybersecurity review two days after its IPO in the US, followed by two similar probes against other Internet companies that were also US-listed. Several speculations spread on why the companies are subject to cybersecurity reviews, and one of them is related to cross-border data transfer during the overseas listing process. Information is available to clear confusion on cross-border transfer of personal information under current and upcoming laws, and companies in China should prepare for upcoming stricter compliance requirements on cross-border transfer of personal information.
