CHINA Beijing strengthens anti-espionage law, concern of foreign companies

The National People’s Congress has expanded the scope of the regulations by granting more powers to the police, such as the search of smartphones and computers. Police recently raided the offices of international companies in China. A few weeks ago a Japanese employee was arrested.

Beijing () – China has expanded the scope of the counterintelligence law to include any matter related to state security defined by the authorities. This expands the power of law enforcement to search people and seize items. According to legal experts, this change in the law could increase the risks for foreign companies and individuals in China.

The amendment, approved last week by the National People’s Congress, will take effect in July and will allow authorities to inspect the digital devices of organizations and individuals, including smartphones and computers. By broadening the definition of “espionage”, normal business activities such as gathering information about the local market, competitors and partners could also become the subject of investigation.

According to the Wall Street Journal, the law will be useful as a tool in dealing with the United States and its allies, but risks undermining efforts to revive the economy and attract foreign investment. Anyone charged with espionage in China faces severe penalties, including the death sentence.

Chinese police recently raided the offices of Bain & Company, an American management consultancy operating in Shanghai. The company has not released any comment on the authorities’ decision. However, according to the Financial Times, the Chinese police visited the company’s offices several times and seized mobile phones and computers, but did not arrest any staff members.

However, in March Chinese authorities had arrested five employees of the Mintz Group, a due diligence firm that collects information and investigates compliance with laws. The company’s China office closed its operations following the arrests, which took place shortly after the United States shot down the Chinese spy balloon.

Dong Yuyu (董郁玉), an editor and reporter for many years for the Chinese newspaper Guangming Daily, was also charged with espionage. Dong had worked for the official newspaper for more than 30 years, and had written many comments against the reform. Police detained him last year while he was having lunch with a Japanese diplomat in Beijing. An open letter signed by more than 60 academics and journalists called for his release: “Meetings with people like Mr. Dong are essential if China and the rest of the world are to have productive, open and stable relations,” the letter says.

Last month a Japanese employee of Astellas Pharma was also arrested for espionage while in Beijing. The incident has shocked Japanese companies to the point that some are advising their employees not to travel to China. Japanese Cabinet Secretary Hirokazu Matsuno urged Beijing to explain the counterintelligence law and ensure transparency in its application and the corresponding judicial process. At least 17 Japanese nationals have been detained by Chinese authorities for espionage since 2014, the year the legislation came into effect, but Chinese authorities have never released details of the charges.