China’s New Anti-Espionage Law and Recent Cases Targeting MNCs

Key Takeaways

• China has promulgated a revised version of its Anti-Espionage Law which greatly increases the scope of activities that could be deemed sensitive to national security and heightens risks for companies doing business in China.
• The extent to which the state security apparatus will use the law is still unclear, but a string of investigations into foreign firms prior to its implementation suggests that China’s focus on security is trending upward.
• It is becoming more difficult for foreign businesses to understand China from the outside, as the line between legally obtaining and sharing information and undermining China’s national security blurs.