Five employees of a US-based business investigation firm, Mintz Group, have finally been released after spending two years in detention in China. They were taken into custody in March 2023 when Chinese authorities raided the company’s Beijing office. At that time, no official reason was given for the raid, and Mintz Group stated that they were not informed about any legal action. The employees, all Chinese nationals, were held without public explanations from authorities.
Their release came shortly after a major business forum in Beijing. This event was attended by top executives from global corporations, including Apple’s CEO Tim Cook and Pfizer’s CEO Albert Bourla. China, currently struggling to attract foreign investments, has been making efforts to reassure international businesses that the country is still open for foreign trade and partnerships.
Business Raids and Growing Suspicion
The detention of the Mintz Group employees was part of a larger crackdown on foreign consulting and due diligence firms operating in China. In 2023, alongside Mintz Group, several other foreign businesses, including Bain & Company and Capvision Partners, faced raids and investigations.
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Chinese authorities at the time were increasingly concerned about foreign firms conducting investigations into the country’s supply chains, business activities, and potential human rights violations. The crackdown took place during a period of heightened suspicion regarding foreign espionage and information gathering. Some experts believe that the actions against these firms were meant to limit the amount of sensitive information about China’s economy and business practices that could be accessed by outsiders.
Later in 2023, Mintz Group was fined $1.5 million by Chinese authorities for conducting what they called “unapproved statistical work.” By then, the company had already shut down its operations in mainland China and Hong Kong, possibly due to increasing risks of operating within the country.
China’s Economic Struggles and Foreign Investments Decline
China’s crackdown on foreign businesses has led to concerns among international investors. The country’s economy has been slowing down, and foreign direct investment has dropped significantly. Government data released earlier this year showed that foreign investment in China had fallen by 99% over the past three years.
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To improve its struggling economy, China has been trying to rebuild trust with multinational companies. At the recent business forum in Beijing, Tim Cook and Albert Bourla were among the global business leaders who attended discussions with Chinese officials. Government representatives assured them that China remains committed to working with foreign firms and creating opportunities for them.
Despite these assurances, the detention of Mintz Group employees and the broader crackdown on consultancy firms have raised concerns about the risks of doing business in China. The sudden arrests and lack of transparency surrounding such cases make foreign companies wary of operating in the country.
The Chinese government has not officially commented on why the Mintz Group employees were detained or why they were released now. However, their release comes at a time when China is making efforts to attract foreign investment once again. While Mintz Group expressed gratitude that their former employees could reunite with their families, the incident remains a reminder of the unpredictable business environment in China for foreign firms.
