The new law, which went into effect July 1, has the “potential to create legal risks or uncertainty for foreign companies, journalists, academics, and researchers,” according to a notice from the National Counterintelligence and Security Center , a counterspy element under. The new law makes documents, data and other materials considered relevant to national security subject to seizure or inspection, the warning notice said.
Additionally, American and other foreign companies and citizens now face penalties for traditional business activities that Beijing could regard as acts of espionage, or actions Chinese regulators believe assist in the implementation of foreign sanctions against China. The laws also can be used to compel Chinese nationals employed by U.S. firms to assist the government’s intelligence collection and operations.
China’s government, through spokesmen and propaganda outlets, often accuses the CIA of spying in China and of working to foment a revolution against the ruling Chinese Communist Party. But the CIA lost most of its agents in China after the Ministry of State Security began targeting the agent networks in 2010, according to intelligence sources.
A 2021 data security law increases Chinese government access to U.S. companies’ data within China and expands Chinese control on the outbound flow of data.Earlier this year, authorities questioned staff members of the U.S. consulting firms Bain & Co. and raided the Beijing office of New York-based due diligence firm Mintz Group. Five Chinese employees of Mintz were arrested for what the Beijing government said were suspected illegal business operations.
People from all those groups have been interrogated or detained by Chinese officials for alleged violations of national security laws.