Chinese Authorities Question Staff at Bain’s Shanghai Office

Chinese authorities have questioned employees at Bain & Company’s Shanghai office, the consultancy said, a development that comes as Beijing exerts pressure on foreign firms operating in the country.

(Bloomberg) — Chinese authorities have questioned employees at Bain & Company’s Shanghai office, the consultancy said, a development that comes as Beijing exerts pressure on foreign firms operating in the country.

A Bain spokesperson confirmed to Bloomberg News Wednesday New York time that “Chinese authorities have questioned staff” in the office, adding that the US company is “cooperating as appropriate.” The spokesperson declined to comment further. 

The Financial Times earlier cited sources familiar with the matter as saying police visited the office and took away computers and phones, but did not detain any team members. The reason for the police visit some two weeks ago was unclear, the newspaper said.

The Shanghai government’s press office didn’t immediately respond to a request for comment sent via email on Thursday.

Chinese officials have recently taken several actions against other foreign firms in the country. Last month, authorities raided New York-based due diligence firm Mintz Group’s office in Beijing and detained five of its Chinese employees. China said that Mintz was “suspected of engaging in unlawful business operations,” without elaborating.

Days later, Chinese authorities detained an employee of Japanese drugmaker Astellas Pharma Inc. on suspicion of “espionage activities.” 

The Biden administration criticized Beijing over the incidents. One US official told Bloomberg News earlier this month that the White House is concerned about what appears to be an emerging pattern of Chinese actions targeting US and other foreign companies. 

Those tactics appear to undercut messages from Chinese officials who say the country wants to work with foreign firms. Premier Li Qiang — the country’s No. 2 behind President Xi Jinping — vowed in March to open wider to the outside world and establish a “broad space” for foreign companies to develop there.

–With assistance from Amanda Wang.

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