China tightens restrictions on businesses who want to go abroad in the midst of a wave of Chinese IPO in the US. Regulators have thrown Gauntlet for local companies by announcing new privacy rules for those who are looking for a list of foreign stock markets, according to Reuters. As a result, any company that has data on more than one million customers must face a review of how they handle that info to receive permission for foreign IPOs.

The regulator will examine the risk of the data being affected, controlled or manipulated by the external government after foreign flotation. In a wider effort to make the company to register locally, China adds two sets of rules that focus on data collection and data storage to data security laws and personal information protection laws.

Constraints arrive in the midst of the hard action of privacy by Beijing. The previous regulator had shook their swords in Tiktok and LinkedIn for alleged violations of data collection. Only last week, the authorities caused a shock wave by ordering a giant Ride-Hailing Didi to remove its application from the mobile store after the US list, caused its shares initially to decrease by 20 percent.

With US-Chinese tension still boiling, the decision is likely to suppress the President of Biden to increase Chinese business supervision. The hostility made by the truf-era policy has subsided in the past few months after the elimination of Chinese Xiaomi and LuoKung technology from military bloklist, which prevents Americans from buying and holding their shares. The expected relationship in the relationship under the Biden might trigger a recent surge in the list of Chinese companies. Last year, Chinese-based businesses raised $ 11.7 billion to 30 IPOs in the US, with more flotations that occurred this year.