China frees imprisoned staff of US-based consulting firm

China last week released five employees of Mintz Group, a New York-headquartered due diligence firm, who had been imprisoned for two years.

Chinese authorities in March 2023 raided Mintz Group’s Beijing office and detained five Chinese nationals, accusing the firm of engaging in unlawful business operations.

The next month, China approved a new espionage law that greatly expanded the list of activities categorized as spying. Chinese authorities subsequently raided the offices of consulting firms Bain & Company and Capvision.

The crackdown on consulting firms arrived amid icier relations with the Biden administration, centering on new restrictions on the sale of semiconductor-making equipment to China alongside the ever-present Taiwan-related tension.

Later in 2023, China levied a $1.5-million fine on Mintz Group for performing “foreign-related statistical investigations” without the necessary approvals. The consulting firm said it had the proper licenses and operated legally.

After the detention of its employees, Mintz Group shut down its offices in China and Hong Kong.

“We understand that the Mintz Group Beijing employees who were detained, all Chinese nationals, have now all been released,” the firm said in a statement. “We are grateful to the Chinese authorities that our former colleagues can now be home with their families.”

The Tuesday release of the five consultants came shortly after the China Development Forum, an event the Chinese government uses to appeal to foreign investors. In attendance were notable corporate leaders such as Apple’s Tim Cook and Pfizer’s Albert Bourla.

At the forum, Chinese officials assured better market access for foreign investors and emphasized global cooperation and a rejection of protectionism.

The tone shift arrives amid slowing growth in the Chinese economy and combative tariff policies from the Trump administration.