China’s foreign companies on edge after ‘state secrets’ raids

Shanghai-headquartered Capvision is among a number of foreign firms that have been probed over their handling of sensitive information [File: Aly Song

Taipei, Taiwan – Foreign companies in China are on tenterhooks following a series of national security raids on consultancy firms that have highlighted the risks of doing business in the era of Chinese leader Xi Jinping.

Eric Zheng, the president of the American Chamber of Commerce, said on Tuesday he was concerned about reports that due diligence firms had been targeted by authorities as their work is “essential to doing business in China.”