Bain & Company was visited by top Communist Party officials in Shanghai, their first known trip to the US consultancy’s office in the financial hub since a crackdown on the sector spooked global investors.
(Bloomberg) — Bain & Company was visited by top Communist Party officials in Shanghai, their first known trip to the US consultancy’s office in the financial hub since a crackdown on the sector spooked global investors.
The managing parter of the firm’s China business, Han Weiwen, “warmly welcomed” and briefed the party secretary of Shanghai’s Jing’an district, Yu Yong, and other officials about business developments at Bain on July 5, the firm said in a WeChat statement Monday.
The Wall Street Journal previously reported the comments.
Bain’s latest statement appears to mark a shift in tone, signaling more positive government relations. A lack of clarity over the purpose of earlier probes among consultancies had heightened fears over the potential outcome. The firm’s WeChat statement on Monday noted that officials had vowed to create a sound business environment for enterprises.
China’s clampdown on consultancies earlier this year ignited fears that President Xi Jinping’s focus on national security threatened to derail his push to attract foreign investors. The global expert network Capvision Pro Corp. found itself at the center of Beijing’s anti-espionage campaign in May when authorities accused it of encouraging its specialists to leak state secrets.
Bain previously confirmed that Chinese authorities questioned staff at its Shanghai office, without revealing details about the nature of the investigation. Officials also raided New York-based due diligence firm Mintz Group’s office in Beijing and detained five of its Chinese employees.
The latest visit by officials to Bain’s came days before US Treasury Janet Yellen traveled to Beijing to help mend ties. She met with more than 10 US businesses operating in China during the trip and raised concerns over the treatment of American companies, including “non-market tools.”
Representatives of the Shanghai government didn’t immediately respond to a request for comment.
–With assistance from Jing Li.
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