China on Monday said state security services had raided multiple offices of international consultancy Capvision, accusing advisory groups in the country of ignoring national security risks and passing on sensitive information abroad, reports the Financial Times. Authorities questioned employees and inspected Capvision’s offices in Shanghai, Beijing, Suzhou and Shenzhen as part of a nationally co-ordinated campaign to clean up the consulting industry in the world’s second-largest economy, state media said.
Chinese media reported that consulting groups had tapped personnel in “our party and government organs and other clandestine units” to provide sensitive information to clients abroad.
The raids on Capvision offices were the latest Chinese actions against consulting groups carrying out due diligence and other corporate advisory work in the country, often at the behest of international investors and multinationals.