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Chinese authorities have approved “rectification” of China-focused consultancy Triumph, the company said in a statement, just months after Beijing cracked down on the operations of foreign consulting firms and due diligence agencies. blow.
State media reported in May that security agents raided multiple offices of the international consultancy, which connects corporate clients with its network of experts in the world’s second-largest economy.
With prime-time footage of a team of police invading its Shanghai offices, Triumph became a symbol of Beijing’s concerns about the national security threat posed by international business consultants, in part for allegedly providing sensitive information to clients.
Beijing has also launched investigations into international consultancy Bain & Company and due diligence group Mintz, rocking the foreign business community in China.
In a statement released on Tuesday, Triumph said it had overhauled its compliance system under government guidance and that the changes had been accepted by the authorities.
Using language that echoed Beijing’s official edicts, Triumph vowed to “take the lead” in recognizing the importance of national security in the consulting industry while making small contributions to “Chinese-style modernization.”
Triumph’s statement comes as Xi Jinping’s government faces one of its bleakest growth prospects in decades and tries to encourage foreign investment in China despite fierce competition with the United States. Last week, China’s Cyberspace Administration announced rules to weaken some of its strict cross-border data controls following complaints from foreign companies.
The raids on consulting firms make it more difficult for foreign companies to do business in China, given their reliance on consultants to navigate the complex local regulatory landscape and competitive business environment.
Foreign investors and business people are also increasingly uneasy about their personal safety when doing business in China.
Last month, the Financial Times reported that a senior Nomura banker was barred from leaving mainland China, while the U.S. State Department warned of “the risks of arbitrary enforcement of local laws, including those related to exit bans and wrongful detention.” risks of” .
Such concerns have deepened with the expansion of China’s counterespionage law in April and Chinese security agencies encouraging a “whole-of-society” approach to policing security risks.
“Our company sincerely accepts supervision from all walks of life,” Kaisheng said in a statement.
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