Chinese Communist Party’s mouthpiece issues national security warning to foreign firms after Capvision raids

  • An editorial in People’s Daily says the country will take a ‘zero tolerance’ approach to efforts to hand over information on sensitive industries
  • Capvision has been accused of helping to leak information about military technology and its offices in four cities were raided earlier this month

The Chinese Communist Party’s flagship newspaper has warned foreign consulting companies to beware of the country’s laws on spying and national security following the raid on the international consulting firm Capvision. In an editorial published after the raids, People’s Daily said an investigation had found the US and Shanghai-based company took on projects from “a large number of companies that are related to China’s sensitive industries”.

The article described national security as “the root of the country’s interest” and said some of the company’s clients had close links with “foreign governments, militaries and intelligence units”. “Under normal logic, Capvision – a leading consulting firm in the industry – should understand the concepts of risks and baselines,” the article said. “There are 300,000 experts in Capvision’s database. If it isn’t aware of the red line, how many possible risks are hovering out there?”

The warning comes after authorities raided the company’s offices earlier this month, questioning staff and inspecting items found at Capvision Partners (Shanghai)’s branches in Shanghai, Beijing, Suzhou and Shenzhen. The firm has been accused in state media of helping to leak information about the Chinese military technology industry to foreigners. The People’s Daily article said publicly available information showed the consulting firm had “a lot of problems” and had “helped its clients convince experts to release confidential information”.

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