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Foreign companies in China face growing scrutiny, pressure

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Foreign companies are under growing pressure in China from anti-corruption, security and other investigations as President Xi Jinping's government tightens control over business, clashing with efforts to lure back investors after the pandemic.

This week, Bain & Co. said police questioned staff in its Shanghai office. The consulting company gave no details of what investigators were looking for. Last month, the corporate due diligence firm Mintz Group said its Beijing office was raided by police who detained five employees. Also last month, an employee of a Japanese drug maker was detained on spying charges and the government announced a security review of memory chip maker Micron Inc.

“China welcomes foreign companies to invest and do business in China. We are committed to building an internationalized, market-oriented and law-based business environment,” said Mao Ning. “All companies in China should operate in compliance with law.” The ruling party has tightened legal restrictions on access to information about companies and their employees. That has increased uncertainty for firms including Bain & Co. and Mintz Group that help clients spot fraud or other misconduct by business partners or acquisition targets.

An employee of Japanese drugmaker Astellas Pharma Inc. was detained in March on what the foreign ministry said were suspicions of spying. Japanese Foreign Minister Yoshimasa Hayashi protested during a visit to Beijing this month.

 

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Foreign companies in China face growing scrutiny, pressureForeign companies are under growing pressure in China from anti-corruption, security and other investigations as President Xi Jinping’s government tightens control over business. That is clashing with efforts to lure back investors after the end of anti-virus controls. This week, Bain & Co. said police questioned staff in its Shanghai office but gave no details of what they were looking for. Last month, the corporate due diligence firm Mintz Group said its Beijing office was raided by police who detained five employees. Also last month, an employee of a Japanese drug maker was detained on spying charges and the government announced a security review of memory chip maker Micron Inc.
ソース: AP - 🏆 728. / 51 続きを読む »