Didi Executive Plans To Step Down As Chinese Tech Giants Rattled By Crackdown

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by Tyler Durden
Tuesday, Sep 21, 2021 - 02:40 AM

Once again on Monday, markets re-focused on Beijing as the CCP scrambled to deal with the teetering developer Evergrande. But elsewhere, Didi co-founder and President Jean Liu has told some of her closest associates that she intends to step down, two sources said, potentially making her the latest casualty of President Xi Jinping's "community crackdown".

Ironically, Liu is a former Goldman Sachs banker who rose to become an MD at the Vampire Squid before jumping to Didi in 2014.  A few weeks ago, sources told Reuters, Liu told a couple of executives close to her in recent weeks - including those who had followed her to Didi from the Wall Street bank - that she planned to leave and encouraged them to start looking for new jobs as well, said one of the sources who was briefed on the matter, per Reuters.

Some of those executives have since approached industry contacts for job leads, the source said.

Reuters was unable to learn further details, including whether Liu had submitted a formal resignation letter or set a date to leave.

Chinese authorities have launched a broad crackdown on private companies, including those that handle sensitive private data, while breaking down monopolistic practices.

Billionaires minted by high-profile listings, such as Didi's $4.4 billion debut, have fallen out of favor as President Xi Jinping warns against the country's vast income inequality.

Didi ran afoul of the powerful Cyberspace Administration of China (CAC) when it pressed ahead with its debut on June 30, despite the regulator urging the company to put it on hold while it conducted a cybersecurity review of its data practices, according to people with knowledge of the matter. Soon after the listing, the CAC announced an investigation into Didi and subsequently ordered the removal of its apps for download in China. Officials from at least six other departments also got involved.