Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 117

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 4
Chunk 117
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China launched cybersecurity investigations with regard to several China-based companies that are listed in the United States. The Chinese
cybersecurity regulator announced on July 2 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered
that the company’s app be removed from smartphone app stores. On July 5,2021, the Chinese cybersecurity regulator launched the same
investigation on two other Internet platforms, China’s Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and Boss
of KANZHUN LIMITED (Nasdaq: BZ). On July 24, 2021, the General Office of the Communist Party of China Central Committee and the General
Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus Tutoring
for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions, franchise
development, and variable interest entities are banned from this sector.

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On August 17, 2021, the State Council promulgated
the Regulations on the Protection of the Security of Critical Information Infrastructure, or the Regulations, which took effect on September
1, 2021. The Regulations supplement and specify the provisions on the security of critical information infrastructure as stated in the
Cybersecurity Review Measures. The Regulations provide, among others, that protection department of certain industry or sector shall notify
the operator of the critical information infrastructure in time after the identification of certain critical information infrastructure.

On August 20, 2021, the SCNPC promulgated the
Personal Information Protection Law of the PRC, or the Personal Information Protection Law, which took effect in November 2021. As the
first systematic and comprehensive law specifically for the protection of personal information in the PRC, the Personal Information Protection
Law provides, among others, that (i) an individual’s consent shall be obtained to use sensitive personal information, such as biometric
characteristics and individual location tracking, (ii) personal information operators using sensitive personal information shall notify
individuals of the necessity of such use and impact on the individual’s rights, and (iii) where personal information operators reject
an individual’s request to exercise his or her rights, the individual may file a lawsuit with a People’s Court.

As such, the Company’s business segments
may be subject to various government and regulatory interference in the provinces