China expands sweeping spy law, raises risks for US companies, journalists

Foreign companies, journalists and academics in China are being warned that the Chinese Communist Party is tightening its already sweeping counter-espionage law which could put individuals and businesses at legal risk. Changes to the CCP’s espionage law come at a time China and the U.S. are at odds over a spectrum of issues, worrying some in the U.S. that China could retaliate against Americans in their country.

The changes expand the definition of espionage from covering state secrets and intelligence to any “documents, data, materials or items related to national security and interests.” The changes do not specify parameters for how these terms are defined.

China and the U.S. are tightening their own national security as skepticism between the two major powers escalate. U.S. consulting firm Bain & Company in Shanghai has already had Chinese police show up to its offices unannounced. Police confiscated phones and computers but no one was detained.

In March, U.S. due diligence firm Mintz Group said Chinese police had arrested five of its local employees and shut down its Beijing office. Chinese authorities said the company was being investigated for “illegal” activities.

A few days later, China’s top cybersecurity regulator said it was investigating U.S. computer chip maker Micron Technology and would review its products over national security concerns. These are a few high profile instances among a campaign of raids and investigations into American companies.

The tightening of China’s espionage law and recent raids against American companies have created concern that American business may not be welcomed in China.

China could be retaliating after Washington announced sanctions against five major Chinese firms making it nearly impossible for them to trade with U.S. firms. This is just the latest rift between the world’s top economies and competitors at odds.