The Increasing Risk of Doing Business in China for US Companies.

The risks of doing business in China are increasing for foreign companies as Chinese authorities exercise their power under a new security law. The offices of Capvision, a consulting firm with offices in New York and Shanghai, and two American firms have been raided in recent weeks. All three companies did business gathering information on Chinese companies for U.S. investors. The increasing crackdown by Chinese authorities makes it politically very risky for foreign businesses, and investors worry that the new counterespionage law may be used as a political weapon to punish certain firms by redefining legitimate due diligence as spying.