![]() In the old CEL, stealing, spying, buying or illegally providing state secrets and intelligence were punishable activities. The revised CEL provides a broader definition of espionage activities by adding a new subset of activities that may constitute espionage. Among other changes, the revisions most notably: (1) expand the definition of punishable espionage activities, and (2) enhance the investigative powers of the relevant authorities. In parallel with the enforcement actions, in April 2023, China also introduced amendments to the existing Counter-Espionage Law (CEL), for the first time since the law's enactment in 2014. The overseas transfer of such information would consequently seem to be considered a potential threat to national security, requiring enforcement actions. Still, the three enforcement instances appear to signal intensified scrutiny over companies that collect information which the Chinese authorities may deem a matter of national security, even if the information is of a commercial nature. The specific reasons behind and legal basis for the enforcement actions were not made public. ![]() The company allegedly helped foreign entities illegally acquire national secrets and sensitive information in relation to key industries in China. Unlike the raids at Mintz Group and Bain, which were only publicised in foreign media outlets, this latest known enforcement action was widely televised on Chinese local and state media in real time. In a similar move, in April 2023, the Shanghai local police carried out inspections at the Shanghai office of US management consultancy firm Bain & Co.įinally, in May 2023, local national security agencies in several cities across China, acting with other local authorities, raided multiple local offices of Capvision, another consultancy firm headquartered in Shanghai. Subsequently, business operations were shut down and remain closed to date. The police visited the firm's premises and detained five Chinese employees for further questioning. In March 2023, the Beijing office of the US consultancy firm, the Mintz Group, was raided by local police. More than ever, MNCs in China will need to pay attention to regular data compliance in their daily operations as well as the source and destination of all information collected, while keeping a broad definition of national security in mind. This will impact multinational companies (MNCs) in China that unavoidably have to deal with the collection and cross-border transfer of local data. This effort, which started as late as 2017 with the introduction of the Data Security Law, indicates that data security has been taken to a level closely linked with national security and “judicial sovereignty”, a Chinese legal concept to prevent any external influence on the country's judiciary. These recent developments appear to be part of a larger effort by the Chinese government to safeguard data and information security. The revised law was first introduced in April 2023 amid a surge in Chinese enforcement activity against US-linked consultancy and due diligence firms, including a raid that was nationally broadcast in China. The amendments significantly expand the scope of activities that can be considered espionage by adding a catch-all provision, and codify the enforcement powers of relevant authorities. On 1 July 2023, the newly revised Counter-Espionage Law came into effect in China.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |