China cyberspace regulator drafts new rules for internet behemoths, sources say

China’s cyberspace regulator has drafted new guidelines that will require the country’s internet behemoths to obtain its approval before they undertake any investments or fundraisings, sources familiar with the matter said on Wednesday.

The proposed requirements from the Cyberspace Administration of China (CAC) will apply to any platform company with more than 100 million users, or with more than 10 billion yuan (US$1.58 billion) in revenue, they said.

Any internet firm involved in sectors named on the negative list issued by China’s National Development and Reform Commission last year will also need to apply for an approval, the sources said.

The sources declined to be identified as the information was not yet public. The CAC did not immediately respond to a Reuters request for comment.

The proposed rules are the latest by China’s increasingly assertive regulators, who have, over the past year, reined in the country’s formerly freewheeling Internet giants in areas from dealmaking to their handling of user data.

This year, the CAC issued a new set of rules, to take effect from Feb 14, that require platform companies with data on more than 1 million users to undergo security reviews before they list overseas.