In a surprising turn of events, Chinese authorities have recently released five employees of the US-based due diligence firm Mintz Group from detention. This release comes after two years of detainment following Xi Jinping’s administration crackdown on consultancies collaborating with foreign multinationals. The Mintz Group Beijing employees, all Chinese nationals, have now been freed, much to the relief of the company and their families.
The detained Mintz staff were held by Beijing’s public security bureau after a raid on the company’s office in the Chinese capital in 2023, causing concern among foreign investors in the region. This development coincides with Xi’s efforts to attract foreign business leaders to invest in China, especially given the country’s slowing growth rates and the escalation of US tariffs on Chinese exports by President Donald Trump.
Despite their release, the Mintz employees have not been charged with espionage or national security-related offenses. However, they are still facing allegations of engaging in business activities beyond the scope of their company’s license. The final detained staff members were released last week, after being held in stages. In addition, Mintz Group was required to pay a fine of approximately $1.5 million imposed by the Beijing Municipal Bureau of Statistics.
As this story continues to evolve, it serves as a reminder of the complexities and challenges faced by foreign businesses operating in China. With shifting political landscapes and regulatory environments, staying informed and compliant is crucial for companies navigating the Chinese market.
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