China Frees Five Detained Staff from US Due Diligence Firm Mintz Group

China has released five Chinese employees of the US-based due diligence firm Mintz Group, nearly a year after they were detained amid Beijing’s crackdown on foreign consultancy and corporate investigation firms. The release marks a rare de-escalation in tensions between China and foreign businesses operating in the country.

Detentions Sparked Concern

The five employees were detained in March 2024 when Chinese authorities raided Mintz Group’s Beijing office. The company, which specializes in corporate investigations, had its operations in China effectively shut down following the raid. The detentions were widely seen as part of Beijing’s broader effort to regulate foreign access to business and economic data, citing national security concerns.

At the time, Mintz Group stated it had not violated any Chinese laws and was committed to compliance with local regulations. However, the arrests raised concerns among multinational companies and foreign investors about China’s tightening control over corporate intelligence and due diligence activities.

China’s Business Crackdown

The Chinese government has been increasing its scrutiny of foreign firms involved in business research, consultancy, and data gathering. Several companies in the due diligence sector have faced regulatory hurdles, with authorities citing the need to protect sensitive information.

Last year, China also passed an updated anti-espionage law that expanded the scope of what could be considered a threat to national security, leading to heightened fears among foreign businesses about operating in the country. The Mintz Group case became a focal point for discussions on the risks faced by companies conducting market research in China.

Diplomatic Pressure and Release

The release of the Mintz employees follows months of diplomatic engagement between the United States and China. The US government had called for transparency in the case and urged Chinese authorities to ensure fair treatment of foreign businesses. The development comes at a time when both nations are seeking to stabilize economic ties despite ongoing geopolitical tensions.

Reports indicate that the released employees are in good health, though no further details were provided about the conditions of their detention. The Chinese government has not made a public statement about the reasons for their release, and Mintz Group has yet to comment on whether it will resume operations in China.

Uncertainty for Foreign Firms

Despite this resolution, concerns remain about the business environment in China for foreign firms conducting due diligence. The crackdown has already led some companies to reconsider their presence in the Chinese market, with others tightening their risk assessments before operating in the country.

As Beijing continues to emphasize national security and data protection, analysts say foreign businesses will have to navigate increasing regulatory uncertainty. The release of the Mintz employees is a positive signal, but experts warn that China’s broader stance on foreign business intelligence remains restrictive.

For now, the case highlights the challenges facing international firms operating in China’s evolving regulatory landscape, with compliance and transparency becoming more critical than ever.

Sources:

• https://www.aljazeera.com/economy/2025/3/25/china-releases-five-detained-staff-from-us-due-diligence-firm-mintz-group 
• https://edition.cnn.com/2025/03/24/business/china-releases-mintz-employees-intl-hnk/index.html 
• https://www.rfa.org/english/china/2025/03/25/chia-releases-detained-us-staff/ 
• https://www.nytimes.com/2025/03/24/world/asia/china-mintz-release-us.html