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Implications of China’s Anti-Espionage Law Raise Alarm for People and Companies

China’s newly enforced revised law, significantly broadening the definition of espionage, has granted Beijing increased authority to crack down on perceived threats to national security. 

However, critics, including the United States government, analysts, and lawyers, argue that the revisions are vague and will provide authorities with greater leeway in implementing the already opaque national security legislation.

China’s Expanded Espionage Law Sparks Controversy 

The revised anti-espionage law, initially released for public comment in December 2022 and formally approved by China’s top legislative body in April, introduces severe punishments for individuals involved in alleged espionage, ranging from life imprisonment to execution in extreme cases. 

Under the new provisions, reliance on espionage organizations and their agents, as well as the unauthorized acquisition of documents, data, materials, and items related to national security and interests, can be deemed as spying offenses.

Beijing asserts its right to safeguard national security through legislation and emphasizes its commitment to upholding the rule of law.

However, experts caution that the changes could inadvertently ensnare individuals with even tenuous links to organizations accused of spying.

These revisions arrive in an already tense environment for foreign businesses in China, following the recent raids and questioning of staff at due diligence company Mintz Group and consulting giant Bain and Company.

Read more: Chinese Spy Balloon Exploits American Tech In Weeks-Long Surveillance Operation

Heightens Business Concerns

Chinas-anti-espionage-law-people-companies
China’s newly enforced revised law, significantly broadening the definition of espionage, has granted Beijing increased authority to crack down on perceived threats to national security.

According to Jeremy Daum, a senior research fellow at Yale’s Paul Tsai China Center, the new law embodies a “whole-of-society approach” in dealing with anything considered a risk to China’s broad definition of national security. 

Daum further highlights that the law builds upon a trend of tightening control since President Xi Jinping assumed power in 2014. 

However, he adds that the vague definition of espionage and national security allows authorities a wider range of interpretations, potentially creating a “chilling effect” on Chinese citizens with foreign contacts.

The revisions have caused concern within the business community, as companies fear even tighter scrutiny.

 Craig Allen, President of the US-China Business Council, expressed worries about routine business activities now being at risk of being considered espionage. 

The changes have raised legitimate concerns about conducting business in China, especially if the law is frequently applied without a clear, narrow, and direct link to universally recognized espionage activities, Allen noted.

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