China To Launch New State Transport Service Application

According to reports, China will launch a state-owned ride-hailing app.

According to reports, the launch of Strong Nation Transport indicates that China wants to be involved in the tech industry while also relaxing an earlier crackdown on industry titans.

According to the report, the new Strong Nation Transport app will initially be available to Communist Party members, will cater to employees of the government and state-owned enterprises, and will give users access to cars available to other ride-hailing apps in the country.

“Because of the previous problems of disorderly expansion and data security in the ride-hailing industry, Strong Nation Transport is built on the principles of convenience and security,” the state-owned Beijing Daily said, according to the report.

The new state-owned entity will compete with Didi, the current market leader, just days after that company was given permission to resume signing up new users after being halted by an investigation into its data practises.

Following a year-long investigation by Chinese regulators into cybersecurity practises as a result of data security breaches, Didi was fined more than $1 billion.

The People's Bank of China had fined Didi's payments division $633,000 just a week before. Penalties were imposed for 12 violations involving transaction requirements for traceability and authenticity, opening accounts for financial firms, and failing to promptly communicate important risk events.

Over time, the new ride-hailing app is to be made available through other apps and expand its coverage to bookings for freight, road, railway, water transport and air-shipping services, according to reports.