
The government doesn't like competition.
Chinese ride hailing app DiDi Chuxing was on Sunday removed from local app stores on on grounds that it did not comply with data protection laws. The ban came less than a week after the company’s US stock market debut. The Cyberspace Administration of China (CAC) issued the ban. In its notice of its actions the CAC wrote: “The …
still preferable to a Dido Ride Hailing service.
As noted by the first AC above, governments don't like competition.
The Chinese government has obviously cottoned on to the fact that any commercial organisation that collects enough personal data will gain the ability to blackmail engineer officials into compliance, it's a direct threat to their ability to maintain control over the long term*.
By doing this the government can also say it has the populations best interests at heart, part of the strategy to keep everyone content with the status quo.
* long term for the chinese govt. is measured in decades.