US would be crazy to ignore growing hazards of doing business in China
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Chinese police last week raided several CapVision offices in China, following similar raids on the Mintz Group in Beijing and Bain & Company in Shanghai. Due diligence and corporate consulting are not usually lightning rod industries, yet these American companies suddenly had their employees detained, their property confiscated, and their offices shuttered.
While these American companies may have been doing normal business (according to the FT’s sources, Minsk ran afoul of the authorities by scanning supply chains for forced labor), the business environment in China is anything but normal.
Agents from the Ministry of State Security (MSS), one of China’s rough equivalents to the Soviet-era KGB, are “constantly in touch with the [due diligence] industry.” “We call them the men in black,” said one executive at a due diligence firm, speaking anonymously to the FT.
Chinas President Xi Jinping gives a speech to leaders attending the Belt and Road Forum at the Great Hall of the People in Beijing on April 26, 2019. (Nicolas Asfouri/AFP via Getty Images)
These raids weren’t a coincidence – they were part of a continued power grab for control over all business in China. At a recent meeting of the