Brian Gu, president of Chinese electric car manufacturer Xiaopeng Motors, stated that his company is in theright“New regulations being formulated by Beijing.
For months, China has been enacting more stringent new regulations on data privacy, network security, and listing on foreign stock exchanges.Gu told NBC Finance Channel Xiaopeng Motors, which is listed on the New York and Hong Kong stock exchanges, already has a “very strong organization…focusing on data security”, keeping it on the right side of Chinese regulators.
China’s crackdown on its technology giants has worried investors that the index value of investment in these companies is about US$500 billion.Some investment strategists also started Reconsider options Stay away from mainland China to maximize their returns.
Gu explained his view that the Chinese government does not intend to disrupt innovation through a regulatory blitz. He said that Beijing believes that electric car companies are an integral part of the country’s critical infrastructure, so it is not in their interest to undermine their success.
“I think our industry is actually called a government-supported industry. They see it as a critical infrastructure and a key component of the growth of manufacturing, smart technology, and carbon neutrality agendas. The government is pushing these agendas vigorously. “Xpeng Motors President Brian Gu told NBC Finance Channel In the interview on Friday.
Since the algorithms of electric vehicle companies generate a large amount of personal data, China has issued specific guidelines for electric vehicle companies. These measures will take effect for Xiaopeng and other companies on October 1. Ministry of Industry and Information Technology (MIIT), The data that needs to leave the country must pass a security assessment.
CNBC also asked Gu Gu if he was also worried about the US Securities and Exchange Commission (SEC) imposing stricter scrutiny on Chinese companies. In early August, SEC asks its staff Request more information from Chinese companies wishing to initiate an IPO.The decision follows Hard Didi Global, a Chinese ride-sharing company, was named by Chinese regulators shortly after its listing on the New York Stock Exchange (NYSE) due to ostensible cybersecurity issues.
In recent years, high-tech companies have been involved in increasingly fierce competition between China and the United States, but the specific corporate structure adopted by Chinese companies wishing to list overseas is a clear cause of concern in the United States.
Known as a variable interest entity, Chinese companies apply for listing by setting up offshore shell companies outside of China and go public in the United States. In most cases, China does not allow foreign direct ownership.
If Chinese companies do not meet the new financial disclosure requirements, the US Securities and Exchange Commission may soon begin to delist Chinese companies from the US stock exchange.According to a report Wall Street JournalSources said that Chinese regulators are frustrated with what they think of the SEC’s high-handed methods.
Gu said that Xiaopeng acknowledged the change in the position of the US Securities and Exchange Commission and will be ready to meet any new requirements from the United States and China.
“In all the documents we have recently submitted, we have obtained all the permits required by the SEC, but in the future we will definitely strengthen any necessary disclosures in China or the United States,” he said.
