China consultancy crackdown sends jitters across foreign business

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Overseas business lobbies in China said on Tuesday they were unnerved by a sweeping crackdown on consultancy.

The European Union’s ambassador to China also raised concern about what state media described as “intensifying” law enforcement aimed at protecting national security, and a broadening of legislation that criminalizes the transfer of information and data.

“Without proper due diligence, foreign companies will be unable to invest in new projects in China,” he said. “The crackdown on consulting firms may be interpreted as a warning to foreign companies operating in China, highlighting the need for businesses to reassess their data handling practices and security measures.”

An expert hired by the firm was jailed for six years for “stealing, espionage and providing state secret intelligence abroad”, CCTV said.

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