Chinese regulators summoned Didi, Geely’s Caocao, and nine other ride-hailing firms on Sept. 1, and accused them of vicious competition, illegal operations, and disrupting the market order.
This is the latest action of the Chinese Communist Party’s (CCP) multi-pronged crackdown on its tech companies, and the second summons after the regulators ordered 10 ride-hailing firms to set up an organization CCP members will lead on May 14.
The Chinese Transportation Ministry announced on Sept. 2 that it had summoned 11 ride-hailing firms with the Cyberspace Administration, Industry and Information Technology Ministry, Public Security Ministry, and State Administration for Market Supervision on the previous day.
The 11 companies include Didi and Meituan, which employ millions of drivers, e-commerce giant Alibaba’s AutoNavi, automaker Geely’s Caocao, state-owned Shouqi Limousine & Chauffeur, Dida Chuxing, state-owned automaker SAIC Motor’s Saic Mobility, state-owned automaker GAC’s Ruqi Mobility, T3 Chuxing, Yangguang Chuxing, and Wanshun Jiaoche.
The announcement said that the regulators ordered the companies to stop the unfair competition tactics, stop recruiting unlicensed drivers, inspect their business practices, and form a compliance plan by the end of the year.
The announcement claimed that the summons was to “promote the healthy and sustainable development” of the industry.