Chinese regulator calls for review of apps that influence public opinion

• CAC sought to lay out a framework for how app makers should operate 

• • App providers should not use their software to engage in activities that endanger national security or disrupt social order

China’s cyberspace regulator announced that apps that could influence public opinion should undergo a security review.

A draft regulation issued by the Cyberspace Administration of China (CAC) on Wednesday sought to lay out a framework for how app makers should operate.

The rules mandate that app providers should not use their software to engage in activities that endanger national security or disrupt social order.

Any news information apps must also obtain a license, which is subject to review by the regulators, the CAC said.

Listing companies

The CAC also said it will implement new rules from February 15 that require platform companies with data for more than one million users to apply for cybersecurity reviews before submitting listing applications to foreign securities regulators, according to statements published on its WeChat account.

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Companies will not be allowed to list abroad if the review finds that national security could be impacted, it said.

In 2021, China said it would introduce a new law to ban domestic tech firms from going public in the U.S. to consolidate crackdowns on industries to tighten cross-border data flows and security restrictions.

Market reaction

The Hang Seng Index fell 0.36% in early trade on Tuesday, and the city’s tech index lost 1.32% following the announcement.

Shares in Hong Kong Exchanges and Clearing Ltd, the operator of the Hong Kong stock exchange, were last down 1.8%, after having fallen as much as 2.4% in the same period.

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Picture Credits: The Businessline

Inputs from Reuters and CNBC