Share this on Twitter Share this on Facebook Share this on LinkedIn Share this on Sina Weibo Share this on Wechat Share this on LinkedIn Credit: Rafael Henrique/Sipa via AP Images China’s sudden regulatory action against Didi, the newly-listed ride-hailing company, is the latest in a series of increasingly stringent measures taken against the country's flourishing technology sector. Even if these steps have some justification on security and anti-monopoly grounds, they will likely diminish the appetite of overseas investors for Chinese startups and deter the Chinese diaspora from starting new ventures in mainland China. In turn, such outcomes will undermine the "community of common destiny" that has propelled China's technology sector into its leading position globally. For two decades, beginning in the late 1990s, China seemed to have stumbled on the perfect formula for nurturing some of the world’s most successful internet companies. The government spent billions of dollars modernizing the country’s telecommunications infrastructure. Meanwhile, technically and culturally savvy entrepreneurs — both at home and among the Chinese Subscribe or login to read the rest. Subscribers get full access to: Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else. A weekly curated reading list on China from David Barboza, Pulitzer Prize-winning former Shanghai correspondent for The New York Times. A daily roundup of China finance, business and economics headlines. We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.