US media reports that foreign companies in China are taking steel wires. On the one hand, they need business information to abide by the continuous expansion of the US sanctions, and on the other handEssence
The Wall Street Journal reported on Friday (May 5) that the relevant Chinese departments recently questioned the employees of the Shanghai Office of the Shanghai Office of the consulting agency, and detained the employees of the US due diligence company Mingswood Group in Beijing.This news has raised their vigilance companies in China to conduct due diligence and collection of commercial intelligence. There are very few details about the above raid operations, and the trigger factors are not clear.
Consultants and lawyers who provide consultation in China to carry out business in China said that they are trying to cope with the growing concerns of related companies, that is, what the Chinese government's measures mean, and where the business of business in China is.
How does it affect China's expansion of the anti -spy law, many consultants and lawyers are already answering questions related to customers and drafting memo.China revised the anti -spy law last week, strengthening the government's control of broader data and digital activities.
The current and former practitioners in this field say that there are no obvious signs that it is undergoing a blow to the industry.A lawyer from an international law firm said he told customers in recent days that the general due diligence of corporate transactions or ensuring that the transaction opponent has not been subject to basic compliance verification work, etc.
It is reported that companies that have inspected the inspection of financial transactions such as mergers and acquisitions and first public offering seem to be under pressure.Another Shanghai office, CAPVISION recently visited by the police, specializes in another type of information collection, that is, expert online consultation; customers pay for experts in an industry through this service.
This kind of consultation and dedication to the company's business scope is very wide. From the verification of investment targets or opponents, as well as financial institutions and companies, to legal accounting, to the background investigation of new employees.
This type of verification may also involve tasks such as excavating databases and retrieval laws and company records.In China, an increasingly serious concern is that verification may involve more sensitive areas, such as suppliers associated with Xinjiang; allegations about the existence of forced labor in Xinjiang have prompted the United States and other countries to impose sanctions.Beijing has always denied the allegations.
The report also mentioned that in the verification of each link in its own supply chain and tracking business partners related companies, the legal burden on the United States and other foreign companies has increased.At present, relevant Chinese departments have increased their pressure on these companies collecting such information and restricted the authority of foreign parties to access the database.These two trends mean greater risks for companies and companies and employees.
The signal that the Chinese government has issued is that after the cancellation of the anti -epidemic restrictions, China opened the door for commercial exchanges.However, foreign companies in China said that they are dealing with more stringent US sanctions networks and increasingly tense relationships between the US and China governments.
A law that enables effective from the end of 2021 prevents imports from Xinjiang from Xinjiang. Members are asking more strictly to enforce the law more strictly.The US government has applied various restrictions to the export of high -end chips to China, and the number of Chinese companies that fall into the scope of export control has increased rapidly, which has increased the workload of compliance.
Kurt Tong, executive partner of the Asian Group, a business consulting company headquartered in Washington, said that it is increasingly difficult to carry out due diligence in China, and prevent some American laws such as forced Uighur Labor Law and other US laws.And policies are also giving birth to more needs.
Tang Weikang also said that the work that the company has done in China has made it share with China and which information should be conflict with foreigners.All countries including Japan, European countries, the United States and China are not only trying to deal with various problems around data, but also to cope with who controls the information and its legitimate use.Data is a product that can affect national security.
Tang Weikang pointed out that the definition of national secrets in China has always been broad.He believes that the revised anti -espionage method shows more clearly that the information that may be regarded as private business data in other countries is considered to be confidential.information.
Independent Chinese issue analyst David Schlesinger said that one reason why the company has played an important role in China is that the background of potential business partners often has doubts.He said that this makes the board of directors of Western companies more necessary to ensure a thorough investigation.
Schleisei said: "The board of Western companies feel that they must have something, so that they can protect themselves so that they can say, yes, yes, we checked ....... The problem in China is that you can easily think that you are operating safely in the gray area, but in China, the gray area will soon become black. "
Jorg wuttke) said: "You never know where you will encounter a problem ... Is it medical and health data? How many people die from the coronary disease? It is correct, more straightforward, and more straightforward expressions will be right.We have great help. "
