Mintz Group, an American corporate due diligence company, confirmed that its Beijing office was raided and five Chinese employees were detained.

(AFP)

[Financial Channel/Comprehensive Report] American corporate due diligence company Mintz Group (Mintz Group) confirmed today that its Beijing office was suddenly searched and five Chinese employees were detained.

The incident has rattled multinationals doing business in China, given China's history of detaining investigators, analysts and journalists linked to foreign companies.

According to comprehensive foreign media reports, relevant Chinese authorities raided the Beijing office of Max Smart Group on Monday (20th), and five employees were detained.

Meisi Zhizhi also stated today that five Chinese citizens employed by the Beijing office were detained without prior notice, and the office was ordered to close.

"The safety and health of our colleagues in China is a top priority and we have hired legal counsel to engage with authorities and provide support to our staff and their families."

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Meisi wisely emphasized that the company has a license to do business in China and operates in a transparent and compliant manner with local laws.

But it has yet to receive any formal legal notice of the case against the company, which has asked Chinese authorities to release the employees.

And stressed: "We are willing to cooperate with the Chinese authorities to resolve any misunderstandings that may have led to these incidents."

Meisi Zhizhi executives said that these employees were taken away on the afternoon of Monday (20th), and their families have not been contacted so far.

"We don't know who is holding them, or when they will be released." It's not even known why they were raided.

The executive also revealed that in mid-January this year, a Singaporean working in the Beijing office was banned from leaving China without any reason.

A few weeks later, with the help of the Singapore embassy, ​​the Singaporean employee was allowed to leave.

It was not yet possible to determine whether the incident was related to this week's raid.

A former employee of Meisi Zhizhi broke the news that during the pandemic, the attitude of Chinese officials towards the company has become tougher, "You don't even know where the red line is."

The timing of this incident happened at a time when the relationship between the United States and China was tense, and when the heads of multinational companies such as Apple and Pfizer were about to arrive in Beijing to meet with high-level Chinese officials and participate in the China Development Forum (China Development Forum), Extraordinary attention.

According to the data, Meisi Zhizhi has 18 offices and hundreds of employees around the world. The company’s partner, Randal Phillips, is responsible for the Asian business. On the official website, he is listed as the former chief representative of the Central Intelligence Agency in China. Currently, Phillips Adams is not in China, and it is not clear whether Beijing's actions have anything to do with him.

An American business person bluntly said that the Meisi Zhizhi incident sent a clear signal that Beijing needs foreign capital and technology, but will not accept reputable American companies to conduct due diligence on Chinese partners or business environments. "Now all boards of directors should Red alert on China risks".

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