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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.
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