China has recently frequently used anti-espionage laws to suppress international consulting companies.

(Reuters)

[Compilation of Wei Guojin/Taipei Report] The New York Times reported that China once again used national security as an excuse to investigate Kaisheng Rongying, a world-renowned business consulting company headquartered in Shanghai on the 8th. The latest move in a broader crackdown.

According to Chinese state media, officials raided Triumph's offices in Shanghai, Beijing, Suzhou and Shenzhen, accusing the company of failing to "seriously fulfill its anti-espionage and security obligations."

On the evening of the 8th, Kaisheng stated on its WeChat official website that it will "resolutely implement the concept of national security development" and play a "continuously leading" role in regulating the consulting industry.

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The New York Times reported that China's move is the latest crackdown on the consulting industry and consulting firms, whose clients include overseas investors and foreign companies seeking information on Chinese industries.

Maxwise, a U.S. company specializing in corporate investigations, said in March that Chinese authorities raided its offices, arrested five Chinese employees and closed the branch.

Last month, U.S. consultancy Bain & Company said security officials visited its offices and interviewed employees.

According to the report, China's state-run TV station Jiangsu Radio and Television reported that Kaisheng often contacted the "secret personnel" of the CCP and officials in sensitive fields such as national defense and science.

Authorities accused Kaisheng of hiring consulting experts with "high remuneration" to "illegally obtain all kinds of sensitive data in our country", saying that they "posed a major risk to our national security".

China Central Television also reported on the 8th that a multi-departmental investigation led to the arrest of at least one employee of a state-owned enterprise, who was sentenced to 6 years in prison for providing "state secrets and intelligence" to foreign clients of Kaisheng.

It was not immediately clear when the raid on Capson began or whether other companies besides Maxwise and Bain Capital were targeted.

Capson's website shows that the company was founded in 2006 by former Bain consultants and former Morgan Stanley investment bankers. It is headquartered in New York and Shanghai and employs 700 people.

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