China Crackdown on Foreign Firms Widens
- China has raided the offices of Capvision Partners, a global consulting firm, accusing it of posing a major risk to China's national security.
- The EU envoy to China has expressed concern that the broadening of Beijing's anti-espionage law and investigations into consultancies could hurt foreign investment in China.
- Major foreign business lobbies in China have warned that the crackdowns are damaging investor confidence and not conducive to attracting foreign investment.
- The scrutiny of consultancies is part of China's tightening grip on sensitive information amid tensions with the US.
- Changes to China's espionage law could see more companies ensnared as practically any information could be considered a threat to national security.