The Capvision investigation comes after recent police raids on Bain & Company and Mintz Group.
Chinese authorities have launched an investigation into global consulting firm Capvision in the latest national security probe to highlight the risks facing foreign companies in China.
The investigation comes after authorities discovered that foreign consulting firms were being used by overseas institutions to obtain sensitive information including state secrets, China’s state-run CCTV said on Monday.
“Capvision accepts many consulting projects from overseas companies in industries sensitive to China, and some of these companies have close relationships with foreign governments, military and intelligence agencies, ” said CCTV in a 15-minute television segment.
CCTV did not elaborate on whether Capvision had been sanctioned but said the country’s national security authorities had dealt with the company “in accordance with regulations”.
A separate state media report said Capvision’s offices in the eastern city of Suzhou were raided by authorities and that the law enforcement operation also involved offices in Shanghai, Beijing and Shenzhen.
The investigation comes after Chinese law enforcement last month questioned staff at US-based consulting giant Bain & Company, and in March the Beijing office of US due diligence firm Mintz Group was raided and detained. the five staff.
Capvision, which has headquarters in New York and Shanghai, did not immediately respond to a request for comment but said in a statement posted on WeChat that it will comply with China’s national security regulations and take the lead in securing to follow the industry.
China has tightened its scrutiny of foreign companies in recent months, including passing a sweeping expansion of anti-espionage laws.
The US Chamber of Commerce earlier this month expressed concern about the heightened scrutiny of US companies in the country, warning that investors “will not feel welcome in an environment where risk is not properly assessed and legal loopholes security is increasing”.
The heightened scrutiny comes despite Beijing’s efforts to reassure investors that China is open for business after nearly three years of strict pandemic curbs and repeated crackdowns on private industry.
Chinese Premier Li Qiang told a gathering of the Chinese Communist Party in March that businessmen and private enterprises “will enjoy a better environment and wider space for development” in the coming years.