. RepGallagher: US would be crazy to ignore growing hazards of doing business in China
State security entities can arbitrarily inspect emails, files, iPhones and any digital devices and communications records. Private businesses can be searched and their trade secrets exposed at the CCP’s whims. No technology is safe. No business is exempt.
The law codifies a long tradition of exploitation. In 2009, MSS arrested Stern Hu and three of his Rio Tinto colleagues over a price dispute. Ten years ago, police raided AstraZeneca’s offices in Shanghai and detained their executives. They did the same to the offices of Microsoft and Uber in 2014 and 2015. The updated CCP Counter-Espionage Law also shows that we cannot trust PRC business entities, even those operating in the U.S.
By targeting due diligence firms, expert networks and consultants, the CCP is sending a clear message: Don’t ask too many questions, or else we will take action against you. That’s also why they’ve cut off access to key economic databases and cracked down on journalists.
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