China’s revised espionage law, in effect since Saturday, expands the definition of espionage and enhances Beijing’s power to penalize perceived threats to national security.
The revisions made to Beijing’s anti-espionage law have been criticized by the United States government, analysts, and lawyers for their vagueness and potential to grant authorities greater flexibility in implementing already ambiguous national security legislation.
Heightened Challenges for Foreign Businesses in China
The revisions were initially made available for public comment in December 2022 and subsequently received formal approval from China’s highest legislative authority in April. Chinese law already imposed severe punishments, including life imprisonment and even execution in extreme cases, for individuals involved in alleged espionage.
In May, a 78-year-old US citizen was sentenced to life in prison on charges of spying. According to the revised law, engaging with 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 considered acts of espionage.
Beijing maintains that it has the right to protect its national security through legislation and is committed to upholding the rule of law. These revisions come at a time when foreign businesses in China are already facing a tense environment, following raids on and interrogations of staff members at due diligence company Mintz Group and consulting firm Bain and Company earlier this year.
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Categorizing Routine Business Activities as Espionage
The new law reflects a comprehensive approach to addressing anything that poses a risk to the broad definition of national security, according to Jeremy Daum, a senior research fellow at Yale’s Paul Tsai China Center.
Daum observed that the law is part of a wider pattern of growing control that has been evident since President Xi Jinping took office in 2014.
However, its vague definition of espionage and national security provides authorities with greater discretion, which is likely to have a discouraging effect on Chinese citizens who interact with foreigners and foreign organizations.
The business community has expressed concerns over the new revisions, as companies apprehensively anticipate heightened scrutiny and tighter regulations.
Craig Allen, President of the US-China Business Council, expressed legitimate concerns in a recent blog post, stating that the changes could potentially categorize routine business activities as espionage.
According to the US State Department, the law is expected to greatly broaden the range of activities that Beijing considers espionage.
Deputy spokesman Vedant Patel affirmed that Washington will continue to advocate for human rights and the rule of law, and seek accountability for China’s repressive activities, including this particular law.
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