US intelligence officials issue fresh warnings over risks of doing business in China
- A bulletin said the new and existing laws could compel companies’ locally employed Chinese nationals to assist in Chinese intelligence efforts.
- The bulletin warned that American and other foreign companies in the country could face penalties from Chinese authorities for regular business activities
China this year has also cracked down on US consultancy and due diligence firms, a move business lobbies have said unnerved foreign investors in the world’s second largest economy.
The US National Counterintelligence and Security Centre (NCSC) said in a bulletin that China viewed outbound flow of data as a national security risk, and that the new and existing laws could compel companies’ locally employed Chinese nationals to assist in Chinese intelligence efforts.
“These laws provide the PRC (People’s Republic of China) government with expanded legal grounds for accessing and controlling data held by US firms in China,” the NCSC said.
“US companies and individuals in China could also face penalties for traditional business activities that Beijing deems acts of espionage or for actions that Beijing believes assist foreign sanctions against China,” it said.