Foreign companies worried by Beijing's widening of anti-espionage laws

The National People's Congress has broadened the scope of the law by also giving the police more powers to inspect smartphones and computers. Recently, police raided the offices of international companies in China. A few weeks ago, a Japanese employee was arrested.

Beijing (AsiaNews) - China has broadened the scope of its Counterintelligence Law to include any matter related to state security as defined by the authorities. This broadens the power of law enforcement agencies to search people and seize objects. And according to legal experts, this amendment to the law could increase the risks for foreign companies and individuals in China. 

The amendment, approved last week by the National People's Congress, will take effect in July and will allow authorities to inspect the digital devices of organisations and individuals, including smartphones and computers. By expanding the definition of 'espionage', even normal business activities, including gathering information on the local market, competitors and partners, could become subject to investigation. 

According to the Wall Street Journal, the law will be useful as a new tool to counter the US and its allies, but it risks thwarting efforts to boost the economy and attract foreign investment. Indeed, anyone accused of espionage in China risks severe penalties, even the death penalty. 

Chinese police recently raided the office of Bain & Company, an American management consulting firm, in Shanghai. The company had no comment on the activities of the authorities. However, according to the Financial Times, Chinese police visited the company's office several times, taking away mobile phones and computers but without arresting any staff members.

In March, however, five employees of the Mintz Group, a due diligence company that collects information and investigates legal compliance, were arrested by Chinese authorities. The company's China office shut down operations after the arrests, which occurred shortly after the US shot down the Chinese spy balloon. 

Dong Yuyu (董郁玉), a long-time editor and reporter for China's Guangming Daily newspaper, was also charged with espionage. Dong had worked for the official newspaper for over 30 years, often writing anti-reform comments. He was stopped by police while having lunch with a Japanese diplomat in Beijing last year. An open letter signed by more than 60 academics and journalists called for his release: 'Meetings with people like Mr Dong are essential if China and the rest of the world are to have productive, open and stable relations,' the letter reads. 

Last month, a Japanese employee of Astellas Pharma was also arrested for espionage while in Beijing. The incident has upset Japanese companies to the extent that some are advising their employees not to travel to China. Japan's Cabinet Secretary, Hirokazu Matsuno, urged Beijing to explain the counter-espionage law and ensure transparency.