After two-year lockup, China frees local staff of U.S. firm

Officials this week released five Chinese citizens who worked for an American firm, the Mintz Group, which conducts background checks and other due-diligence investigations. Authorities detained the staff members in March 2023 during a raid on the company’s office in Beijing during a crackdown on foreign research firms. At the time of last year’s raid, the company told CNN it wasn’t notified of a legal case against the company and that it had asked China to release its staff.

Chinese officials have raided multiple foreign firms working in China in recent years over alleged national security risks and illegal business practices. In April 2023, Beijing strengthened its counterespionage law to more tightly control how corporations collect and share data.

Months later, China fined the Mintz Group about $1.5 million for allegedly conducting illegal statistical investigations. By then the company had already closed all of its offices in mainland China and Hong Kong. Chinese authorities have not commented publicly on the detention of the staff members or their release.

How is China’s economy connected to this situation? The crackdowns on foreign research firms have reportedly hurt investor confidence in the country. China this week invited American industry leaders to attend its annual business forum in Beijing as its economy has been slowing. China is trying to boost international investment and reassure companies that the country is strong, Scott Kennedy, an expert in Chinese at the Center for Strategic and International Studies, told CNBC.

Dig deeper: Read Elizabeth Russell’s report about China, Canada, and Mexico retaliating against Trump’s tariffs.