Thread by @WilliamYang120

Exclusive from @Reuters: #China’s ride-hailing group Didi is in talks with state-owned information security firm Westone to handle its data management and monitoring activities, sources said, as part of its efforts to placate domestic regulators. google.com.tw/amp/s/m.econom…

Didi is in discussions with Westone Information Industry, which would be the main third-party company to manage its massive data stored domestically as per domestic regulators' guidance, said two people with knowledge of the matter.

In response to the Reuters report, Didi said in a statement: "Recent media reports concerning proposals for DiDi to hand over control of data, introduce new major shareholders, and delist, etc. are untrue." It did not offer further detail.

Shenzhen-listed Westone, the CAC, and the State Council Information Office did not immediately respond to Reuters' requests for comment after regular Asia business hours on Friday.

Westone, which provides information security services and products, counts state-owned China Electronics Technology Group as parent and biggest shareholder - making it a preferred candidate for Beijing, said the people.

Didi has submitted proposals to Chinese regulators in recent weeks to allay their concerns, which included bringing in Westone for managing its data across various business lines, said one of the people.

Didi collects user location and trip route data, for safety and data analysis, and routinely publishes reports illustrating its "big data" analytics, showing, for example, what times people in certain cities finish work, or which employers have the longest work hours.

The discussions with Westone come amid Beijing's widening crackdown on private companies over antitrust and data security concerns, which has wiped off billions of dollars from the market value of some home-grown companies in recent sessions.

Bloomberg earlier on Friday reported Didi was considering conceding management of its data to a private third party as part of its efforts to resolve the regulatory probe, without naming the company.

The Westone discussions indicate how Beijing is looking to rein in some major privately-owned companies after years of a more laissez-faire approach, and involve state-backed firms with a view to have firmer control over their operations.

Under the plan being discussed, Westone would be able to access Didi's servers across the country to track the latter's data collection, usage and transfers, said the people.

It would also use its advanced encryption algorithm to prevent potential data breaches at Didi, said the second person. Encryption is regularly used to protect and securely transfer information online.