Even as China Reopens, Security Visits Spook Foreign Businesses

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Even as China begins to reopen its economy, foreign businesses are being spooked by security visits. The visits are part of China’s anti-espionage campaign, which has been ongoing since 2014. During the campaign, Chinese authorities have been cracking down on alleged foreign spies, both within and outside China’s borders. The campaign has been a response to concerns that foreign governments and companies are using China’s openness to conduct espionage and steal intellectual property.

The security visits are being carried out by China’s Ministry of State Security (MSS), which is responsible for intelligence gathering and counterintelligence in China. The MSS has been visiting foreign businesses and demanding access to information about their operations in China. The visits have been causing concern among foreign businesses, as they are unsure about what type of information the Chinese authorities are looking for.

According to a report in the Financial Times, foreign companies are being asked to provide information about their employees, including their names, nationalities, and work experience. The authorities are also asking for access to the companies’ computer systems, in order to check for any unauthorized access or theft of information.

The security visits have been causing “perplexity” among foreign businesses, as they are unsure about how to respond to the demands from the Chinese authorities. Some businesses have complied with the requests, while others have been hesitant to provide access to sensitive information.

The security visits are not new, but they have become more frequent since the start of the anti-espionage campaign. The Chinese authorities have been targeting foreign businesses that they believe may be involved in espionage or other activities that are deemed to be a threat to national security.

The concerns from foreign businesses are not without merit. In the past, there have been cases of foreign companies being accused of espionage in China. In 2016, a Chinese court convicted an American businessman of espionage and sentenced him to prison. The businessman had been accused of passing sensitive information about China’s oil industry to the US government.

The security visits have also coincided with a crackdown on foreign NGOs in China. In 2017, China passed a law that required foreign NGOs to register with the government and obtain approval for their activities in China. The law has been criticized by human rights groups, who say that it has been used to curtail the activities of foreign NGOs in China.

Despite the concerns from foreign businesses, China remains an attractive market for many companies. The country has a population of over 1.3 billion people, and a rapidly-growing middle class. The Chinese government has also been investing heavily in infrastructure, which has created opportunities for foreign companies in the construction and engineering sectors.

Foreign businesses that want to operate in China need to be aware of the risks and take measures to protect their intellectual property. This includes working with local partners who have a good understanding of the local legal and regulatory environment, and investing in cybersecurity measures to protect sensitive information.

In conclusion, even as China reopens its economy, foreign businesses are being spooked by security visits. The visits are part of China’s anti-espionage campaign, which has been ongoing since 2014. The campaign has created concerns among foreign businesses, which are unsure about what type of information the Chinese authorities are looking for. Despite the risks, China remains an attractive market for many companies, and businesses need to take measures to protect their intellectual property if they want to operate successfully in the country.