Chinese authorities have released all five employees of U.S. corporate due diligence firm Mintz Group who had been detained in Beijing since March 2023, marking a significant gesture as Beijing attempts to restore foreign investor confidence amid a steep decline in capital inflows.
The release, confirmed by a Mintz Group spokesperson to Reuters, follows the recent China Development Forum in Beijing, where dozens of global CEOs gathered at the invitation of senior Chinese officials. The timing of the move appears aimed at signaling openness to foreign business interests, particularly as foreign direct investment in China fell 27.1% in 2024 compared with the previous year, the sharpest drop since the 2008 financial crisis.
"We are grateful to the Chinese authorities that our former colleagues can now be home with their families," a Mintz Group spokesperson said in a statement provided to NPR and Reuters.
The detained staff-Chinese nationals working for Mintz's Beijing office-were swept up in a broader crackdown on foreign consulting and due diligence firms that escalated in early 2023. That wave of enforcement included raids on the offices of Bain & Company in Shanghai and Capvision Partners, as China tightened control over the flow of corporate and trade-related information.
Mintz, which specializes in background checks, corporate investigations, and risk assessments, operates 12 offices globally and employs more than 280 investigators, according to the firm's website. It has since shuttered its operations in both Beijing and Hong Kong.
Authorities accused the company of conducting "unauthorized statistical investigations," a charge that has not been publicly detailed. Reuters previously reported that Mintz had been involved in research linked to forced labor concerns in supply chains associated with China's Xinjiang region. The United Nations has accused China of potential crimes against humanity in that region.
The detentions occurred just ahead of the 2023 China Development Forum and cast a long shadow over Beijing's efforts to project a business-friendly image. While the government has publicly maintained that it welcomes foreign investment, officials have repeatedly emphasized that national security concerns take precedence.
This policy stance has created ongoing tension for foreign firms operating in China, particularly those in sectors involving data collection, auditing, and compliance. The business environment has grown increasingly uncertain, exacerbated by sweeping counter-espionage and data security laws that limit the type of information foreign firms can collect and share.
In 2021, Chinese police also raided a foreign auditing firm tied to investigations related to Xinjiang, and later targeted a large marketing research company in Shanghai, further amplifying concerns about the risks facing foreign companies operating within the country.
