Chinese authorities have also recently released five former employees of US due diligence firm the Mintz Group. They’d already spent two years locked up. The release comes on the heels of a March 2023 raid by China’s public security bureau on the firm’s Beijing office. Further complicating matters, the staff, all Chinese nationals, were held without the company ever receiving any formal legal documentation about the raid.
The release comes as one of China’s largest international business forums, the China International Import Expo, concludes in Beijing. Foreign executives of the highest caliber—including Tim Cook with Apple and Albert Bourla with Pfizer—filled the room in droves. The business forum is the latest sign of China’s efforts to attract foreign investment as it tries to breathe new life into its slowing economy.
Mintz Group previously had offices in mainland China and Hong Kong. When the staffers were finally freed, the firm had already closed down all of its operations in those areas. The firm was in deep hot water during an increasing distrust of foreign companies permeating China. This phase was characterized by a wave of raids on consultancy firms including Bain & Company and Capvision Partners.
The company had already been penalized $1.5 million in 2023 for doing “unauthorized statistical work.” Alerted by reports from Reuters, Mintz Group is currently investigating the alleged use of forced labor in supply chains linked to China’s Xinjiang region. They are diving really, really deep on this really important topic.
In a joint statement celebrating the release, a representative from Mintz Group said they were thankful for the leadership on this issue.
"We are grateful to the Chinese authorities that our former colleagues can now be home with their families" – Mintz Group
This was a cause for alarm when the Mintz Group’s staff was detained. Their next drop shed light on the nuances of China’s marriage with overseas enterprises. As the nation seeks to bolster its economy, these developments highlight the delicate balance between maintaining national security and fostering an inviting environment for foreign investment.