China's revision of anti-espionage law improves business environment, not opposite
Global TimesApr 15, 2023
Chinese authorities have launched an investigation into the Shanghai and New York-headquartered consulting firm Capvision, Chinese media reported Monday. This comes as Beijing tightens its scrutiny of foreign consulting and advisory firms.
Capvision offices in Shanghai, Beijing, Suzhou, and Shenzhen were raided for failing to seriously perform their "responsibilities and obligations" to prevent espionage, state media claimed.
The Capvision investigation and the recent revision of China's anti-espionage law are further evidence that China is serious about combating increasing espionage activity and protecting national security. Moreover, the revised legislation protects the interests of foreign companies and individuals, which means that contrary to tiresome and mushrooming criticism, the anti-espionage law will continue to improve rather than worsen the PRC's business environment.
The Capvision raids are yet more bad news for all companies who hoped that China's economy would finally reopen to the world after COVID. Moreover, with its ambiguous definition of China's "national security," the new espionage law is likely to further weigh on the business climate, which is a cause of great concern for investors and their local business partners. China risks scaring away foreign investors, thereby jeopardizing its economic performance.
There is a 30% chance that China's GDP will overtake that of the US before 2030, according to the Metaculus prediction community.