Why did China ban Didi?

The first sign that Didi was going to be released from its purgatory came in July 2022, when the Cyberspace Administration fined the company RMB8. 026 billion ($1.2 billion) for violating China's network security law, data security law, and personal information protection law.



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In January, Didi's apps returned to app stores in China after being removed in July 2021.

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Didi Global Inc.'s main apps have returned to the country's biggest mobile stores, allowing the ride-hailing giant to resume growth after more than a year spent in regulatory limbo. Its main ride-hailing app reappeared for download on the Chinese iOS store as well as platforms run by Huawei Technologies Co.

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Go is Japan's highly successful taxi app, with a network of 100,000 cabs aggregated from multiple local taxi companies. Thanks to regulation that effectively bans Uber and Didi from operating private car-sharing services, Go commands 70% of the mobility market in Japan.

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Like most U.S. internet companies, Lyft has avoided China. Despite being the world's second-biggest economy and biggest country by population, China has been notoriously difficult to crack, largely because of the government's censorship policies and favoritism towards domestic providers.

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In 2019 a German court declared the Uber app illegal because it bypassed registered and regulated taxi companies. Uber was also banned or restricted around the same time in London, Barcelona, and some other European cities. Uber now manages to operate in Germany and the EU only as a regulated taxi service.

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Then he got too big for Beijing. Cheng Wei built a world-class ride-hailing app that not even Uber could keep up with in China. But Didi's risky play for expansion and dominance — culminating in a disastrous IPO this summer — has caused it to run afoul of Beijing.

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