High stakes for China in crackdown on foreign business
Financial Times
23-05-10 17:19
The editorial board of the Financial Times has warned that recent crackdowns on US consultancies operating in China could jeopardise economic globalisation as the delivery of basic information on potential acquisitions, Chinese partners or suppliers has become more difficult. China has said that state security services have raided several offices of firms, including Capvision and Bain. The US Chamber of Commerce has warned that Chinese scrutiny of American companies has risen “dramatically” and that visits from “men in black” have increased. China’s clampdown threatens to undo the recent charm offensive of Li Qiang, China’s second-ranked leader. Meanwhile, US and EU relations with China have remained strained. China yesterday said it would retaliate if new EU member state sanctions on eight Chinese companies, including two firms linked to forced labour practices in Xinjiang, were implemented.