China Cracks Down on Business Consultancy: Capvision Offices Raided

China’s foreign intelligence agency has conducted raids on the offices of business consultancy firm Capvision in various Chinese cities, as part of a larger campaign against foreign businesses that share sensitive economic data. This investigation is part of an ongoing crackdown on such companies.

As Xi Jinping’s government exerts greater control over businesses in the country, foreign companies operating in China are facing increasing pressure due to national security concerns. This comes at a time when the government is also trying to attract foreign investors, which may cause a clash with their efforts to tighten control. These efforts have been prompted by the lifting of COVID-19 pandemic restrictions.

According to state media reports, officials from the Ministry of State Security, police, and market regulatory bodies conducted raids on multiple Capvision branches across China, including those in Beijing, Shanghai, Suzhou, and Shenzhen. The reports did not specify the other locations targeted.

During the raids, the authorities questioned Capvision’s employees. The reports did not mention any arrests or detentions, but they stated that the company and the individuals involved in the matter were under investigation in accordance with the law.

State media did not provide any information about the precise legal matters at the center of the investigation. Additionally, the reports did not disclose the exact dates when the raids took place on Capvision’s offices, as the company is based in both New York and Shanghai.

According to a report by state broadcaster CCTV, some Western countries have been accused of stealing intelligence and information regarding China’s military industry, economy, and finance. The report also alleged that domestic consulting companies were complicit in stealing such secrets.

Foreign Ministry spokesperson Wang Wenbin stated that China’s national security authorities and other “competent departments” have been carrying out “open law enforcement on relevant enterprises in accordance with the law” and gave no further details. Capvision, a business consulting firm with offices in New York and Shanghai, was among the companies that had been raided by the authorities.

Eric Zheng, president of the American Chamber of Commerce in Shanghai, said that China needs to be more transparent about law enforcement actions against companies such as Capvision. The investigations into Capvision and other companies come amid strained relations between China and the United States, Europe, and Japan over disputes about human rights, Taiwan, security, and technology.


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