China has released five staff members from the US consultancy Mintz Group after two years of detention due to a crackdown on foreign firms. Their release coincided with a business forum aimed at reviving foreign investment in China, where officials expressed commitment to welcoming multinational corporations. The detained employees were Chinese nationals, and the firm faced fines for unapproved activities, amidst ongoing concerns about forced labor in Xinjiang.

China has recently released five staff members from the United States-based due diligence firm Mintz Group, who were detained for two years as part of a broad crackdown on consulting firms collaborating with foreign businesses. Their detention, which began in March 2023, coincided with a period of increased suspicion concerning foreign espionage in the nation, prompting extensive raids on firms such as Bain & Company and Capvision Partners.

Mintz Group expressed gratitude for the release in a statement, highlighting their relief that the employees can now return to their families. The timing of their release coincided with a high-profile business forum in Beijing, featuring distinguished foreign executives, including Tim Cook from Apple and Albert Bourla from Pfizer, indicating a potential thaw in relations.

China is actively seeking to attract foreign investment to invigorate its sluggish economy. Reports have shown that foreign direct investments have declined by 99% over the last three years, prompting urgent governmental reassurances. At the recent forum, Vice Premier He Lifeng affirmed the country’s steadfast commitment to welcoming multinational corporations and fostering developmental opportunities.

All five released employees hold Chinese nationality and were initially detained following a raid conducted by China’s public security bureau at Mintz Group’s Beijing office. The firm noted that it did not receive any formal legal notification regarding the raid. Although Mintz Group has closed its offices in mainland China and Hong Kong, they were subject to a $1.5 million fine later that year for conducting “unapproved statistical work.”

Additionally, it was reported that Mintz Group had been involved in investigating potential forced labor practices linked to supply chains in China’s Xinjiang region. The lack of official commentary from Chinese authorities concerning both the initial detentions and the subsequent release has been notable.

In summary, the release of the five Mintz Group employees marks a significant development following their two-year detention amid a crackdown on foreign consulting activities in China. This incident highlights the complexities surrounding foreign business operations within the country. As China seeks to revive foreign investment efforts, it remains essential to monitor the evolving landscape of foreign relations and investment policies.

Original Source: www.bbc.com

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