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China raids offices of business consultancy Capvision



China’s chief foreign intelligence agency has raided the offices of business consulting firm Capvision in Beijing and other Chinese cities as part of an ongoing crackdown on foreign businesses that provide sensitive economic data.To get more latest news in china economy, you can visit shine news official website.

Foreign companies operating in China have come under increasing pressure, driven primarily by national security considerations, as Xi Jinping’s government tightens control over business, clashing with efforts to lure back foreign investors after COVID-19 pandemic restrictions were lifted.

Investigators simultaneously visited Capvision branches in Beijing, Shanghai, and the southeastern manufacturing hubs of Suzhou and Shenzhen, along with other locations the state media reports did not identify.

Officers from the Ministry of State Security, police and market regulatory bodies questioned staff, the reports said. There was no word on arrests or detentions, although the reports said investigations had been opened into the company and “personnel involved in the case according to law.”

No details were given about the specific legal issues at stake, and state media did not give the exact dates of the raids on Capvision, which is headquartered in New York and Shanghai.Over recent years, in order to realize the strategy of containing and and suppressing China, certain Western countries have become increasingly rampant in stealing intelligence and information pertaining to our country’s military industry, economy and finance,” state broadcaster CCTV said Monday.

The report alleged domestic consulting companies were tools of stealing such secrets. “Some domestic consulting companies have weak awareness of national security and seek to benefit financially by straddling the legal barriers," the CCTV report said.

Asked about the recent actions against Capvision and other companies, Foreign Ministry spokesperson Wang Wenbin said China’s national security authorities and other “competent departments” have recently been carrying out “open law enforcement on relevant enterprises in accordance with the law.”

“This is a normal law enforcement action in accordance with Chinese law, aiming to promote the regulated and sound development of the industry and safeguard national security and development interests,” Wang told reporters at a daily briefing Tuesday. The spokesperson gave no further details.

Capvision bills itself on its website as a “leading global expert network platform that excels at identifying the right advisors for specific business insights.” The company says it serves more than 2,000 clients through more than 600 researchers and 450,000 industry professionals.China needs to be more transparent about law enforcement actions against companies such as Capvision that carry out the sort of due diligence that firms need to make investment decisions, said Eric Zheng, president of the American Chamber of Commerce in Shanghai said in a press statement.

“It would be helpful if the authorities would more clearly delineate the areas in which companies can or cannot conduct such due diligence," Zheng said. "This would give foreign companies more confidence and enable them to comply with Chinese regulations.”

Capvision has not commented on the raids, but on its WeChat social media channel posted a flyer Monday marking National Security Education Day, which fell on April 15.

“As a leading Chinese industry specializing in providing information services, Capvision is resolutely committed to the outlook on national security and is leading the industry in its healthy and orderly development,” the flyer said.

The company is just the latest to be investigated, apparently over its attempts to obtain information that would not be considered state secrets in other countries.