Image: DiDi
What happens to DiDi now?

Good morning! This Wednesday, DiDi is in hot water with the Chinese government, Nextdoor gets SPAC'd, the Pentagon drops its JEDI contract, and Aaron Levie's in a fight for his life at Box.
(Was this email forwarded to you? Sign up here to get Source Code every day.)
Since Alibaba's smashing 2014 debut on the New York Stock Exchange netted $25 billion, investors have salivated at the chance to buy into China's growth story, with dozens of Chinese companies raising $12.4 billion in the first half of this year alone. Now investors are learning the hard way that purchasing shares in a Chinese company also means being subject to its ever-growing regulatory risks.
It's now ride-hailing giant DiDi's turn in the spotlight ... for better and for worse. Just two days after going public on the NYSE and raising $4.4 billion, the company announced it was under investigation by China's Cyberspace Administration as it conducts a review of the company's data infrastructure.
Powerful Chinese tech firms like Alibaba, Tencent and DiDi own detailed, real-time dashboards into major portions of Chinese life. They include everything, from what people want and buy to what they tell their friends in private to where they're going each day.
DiDi's facing an impossible paradox. In the U.S., Chinese companies like DiDi face the risk of being delisted for not disclosing enough information — particularly after the passage of the Holding Foreign Companies Accountable Act, which requires companies to certify that they aren't "owned or controlled by a foreign government." But back in China, the companies may violate domestic laws by complying with U.S. disclosure rules — particularly around the sensitive question of cybersecurity.
More Chinese firms will IPO in the U.S. in the future, but their stars are surely dimmed. China's a huge market, rife with talent and home to many companies with innovative products and exciting growth stories. But regulatory troubles and Beijing's growing hostility to tech listings abroad means a lot of "hair" on these offerings — meaning lower valuations stateside and a higher likelihood that China's tech darlings look to Hong Kong or Shanghai instead.
—Shen Lu (email | twitter) and David Wertime (email | twitter)
A version of this story will be in today's China newsletter. Sign up here to get access.
Recently, Micron announced new memory and storage innovations across its portfolio based on its industry-leading 176-layer NAND and 1α (1-alpha) DRAM technology. But what does "1α" mean, and just how amazing is it?
Tech talent is everywhere, Pittsburgh Mayor Bill Peduto said, but the VC industry still isn't:
Getting hit by ransomware "totally sucks," Kaseya's Fred Voccola said, and it's going to happen to everyone:
The moment for Big Tech reform is right now, Rep. Ken Buck said, and time's a-wasting:
Spotify was never about artists making money, former exec Jim Anderson said at a music conference:
Nextdoor is going public. It's merging with a Khosla-backed SPAC, and will be valued at about $4.3 billion in the deal.
Ursula Burns is Teneo's new board chair. The former Xerox CEO has also been a financial adviser to the company for the past few years.
Starboard is trying to get Aaron Levie fired from Box. The two sides are in a fight over board seats and the overall direction of the company, and the fight is spilling out into a proxy battle ahead of a shareholder meeting.
The Center for Tech Diplomacy at Purdue think tank is launching today to focus on 5G, AI, semiconductors, digital currency, cybersecurity and other tech issues in U.S. foreign policy. Mung Chiang is its first director, and Keith Krach will be chair of the advisory board.
Since it's officially vacation season, we thought we'd use this section for a while to help you while away the dog days with some good books, documentaries, podcasts and other fun things. Some may relate to work, some may not, but all will be fun.
First up is a running list of books about how startups went public, sparked by a tweet from Yehong Zhu. There's a Ph.D. in founder-ing for anyone who reads them all, but here are a few popular ones from the thread to get you started: "The Perfect Store," a book about eBay's roots by Adam Cohen; Sam Walton's "Made in America" on the Walmart story; and "Hatching Twitter" by Nick Bilton.
Do you have any recs to add? Reply to this email and let us know! We'll be here all summer.
Recently, Micron announced new memory and storage innovations across its portfolio based on its industry-leading 176-layer NAND and 1α (1-alpha) DRAM technology. But what does "1α" mean, and just how amazing is it?
Thoughts, questions, tips? Send them to sourcecode@protocol.com, or our tips line, tips@protocol.com. Enjoy your day; see you tomorrow.
To give you the best possible experience, this site uses cookies. If you continue browsing. you accept our use of cookies. You can review our privacy policy to find out more about the cookies we use.