China has kicked off an anti-spy campaign targeting violations at consulting firms and accused Capvision of facilitating the leak of state secrets, according to state-run media.
Jiangsu’s provincial TV station reported that a nationwide campaign against state security violations among consulting firms had started. The report said the state security agency in the city of Suzhou had visited Capvision’s local branch and questioned company employees. It also reported that operations had been carried out in Beijing, Shanghai and Shenzhen. Capvision has offices in those cities and the report didn’t identify whether other firms were involved.
Some companies illegally acquired sensitive data through frequently contacting people working in government agencies and the defense sector who have access to state secrets, creating major risks to national security, the TV report said, citing a police officer.
Separately, state broadcaster CCTV reported some consulting firms, including Capvision, had ignored national security risks and deliberately “selected, lured and hoaxed experts and scholars in sensitive industries to provide internal information” involving secrets. By doing so, companies had become accomplices in “spying state secrets and intelligence for foreign countries,” the report said.
Capvision said in a statement posted to its WeChat account on Monday evening that it will resolutely stick to national security policies and take the lead to guide the healthy development of the consulting industry.
Read more: Foreign Executives in China Ask ‘Who’s Next?’ After Bain Probe
Investors operating in China are facing a more challenging environment despite Beijing’s push to improve ties globally, with US consultancy firms in particular finding themselves under the spotlight.
Late last month, US consultancy Bain & Company confirmed that Chinese authorities questioned staff at its Shanghai office, without revealing details on the nature of the investigation. That followed a series of actions taken against other foreign companies, including a raid of New York-based due diligence firm Mintz Group’s Beijing operations and the detention of an employee of Japanese drugmaker Astellas Pharma Inc. just days later.
The growing concerns within China’s business community contrasts with public messages from senior leaders including Premier Li Qiang, who called the nation “an anchor for world peace and development” in a speech aimed at wooing the global business community in March.
The government last month passed a new counter-espionage law that expanded the list of activities that could be considered spying, intensifying the risks for foreign firms. And Beijing has also moved to tighten its grip on sensitive data as tensions with Washington mount.
Read more: China Broadens What It Considers Spying in a New Espionage Law
--With assistance from Li Liu.
