ByteDance meets with Chinese data security officials: Sources | Business and Economy News

TikTok owner ByteDance met with Chinese regulators earlier this year on data security, a person familiar with the matter told Bloomberg News.

TikTok owner ByteDance Ltd. is working to ensure it meets data security requirements after meeting with government officials on the matter earlier this year, a person familiar with the matter said. .

The Chinese tech giant, whose apps also include TikTok’s Chinese twin Douyin and news aggregator Toutiao, had launched initial preparations for an IPO of its domestic assets, Bloomberg News reported in April. ByteDance’s considerations regarding the IPO were evolving even before the IPO of Didi Global Inc. in New York City triggered a regulatory backlash. private information.

ByteDance regularly meets with regulators in Beijing on a variety of issues, including data security, and the March talks were part of that ongoing process, according to one person. Founder Zhang Yiming did not attend the March meetings, the person said. A representative for ByteDance declined to comment.

Companies seeking to raise capital in foreign markets are now under closer scrutiny, after China on Saturday proposed new laws that will require virtually all companies heading to an IPO outside of China to undergo a cybersecurity exam. Didi had gone ahead to register in New York in June, although Bloomberg News reported that regulators asked him three months ago to delay the debut. Authorities have since launched a cybersecurity investigation into the company and removed its services from Chinese app stores.

The Wall Street Journal previously reported on March’s meetings with regulators, adding that ByteDance indefinitely suspended its plans to register overseas earlier this year after Chinese officials asked the company to manage the risks involved. data security. Regulators never immediately called for a delay in ByteDance’s possible share offering, but they were concerned about data security compliance by its applications in the country, according to the report.

The Cyberspace Administration of China and the China Securities Regulatory Commission did not respond to the Journal’s requests for comment.

Private market trading of ByteDance shares has held steady at around $ 330 billion over the past month, according to a person with direct knowledge, although asking prices for the share have been higher.

ByteDance planned to raise at least several billion dollars from a list of its Chinese assets, Bloomberg reported in April. At that time, it was choosing between Hong Kong and the United States as its listing location. In March, the company hired Shou Zi Chew from Xiaomi Corp. as CFO, fueling speculation about an impending IPO.

The company then released a statement claiming it did not qualify to go public and currently has no such plan.

(Updates with more details of the meeting in the third paragraph, the latest review of ByteDance in the fourth paragraph)