Security News > 2023 > May > Beijing raids consultancy, State-sponsored media warns more to come
Beijing sent a message to foreign businesses this week when it launched an investigation into Shanghai-based Capvision Partners on the grounds of national security, accusing the consultancy firm of failure to prevent espionage.
State-sponsored broadcaster China Central Television reported that the raid led to the arrest of a senior researcher from a large state-owned enterprise in China - for providing Capvision's foreign clients with intelligence.
According to state broadcaster Jiangsu Television, a Suzhou State Security Bureau police officer accused consultants and investigation firms like Capvision of undertaking foreign-related projects and contacting individuals with access to state secrets, both science and defence related, in exchange for money.
Last month Beijing expanded Anti-Espionage Law's definition of spying and banned the transfer of national security related information.
US memory vendor Micron was recently put under investigation for "Security risks caused by hidden product problems" - an allusion to China's suspicion the Idaho-based firm's chips have back doors.
On Monday night, Capvision's official WeChat page responded to the raid and promised to "Firmly implement national security development" while taking a leading role in guiding the consultancy industry.