NEWS – “without comment”

Posted by: Ian (D. Withers)

China’s ‘men in black’ step up scrutiny of foreign corporate sleuths Raids on consultancies reveal mounting risks of performing due diligence

Foreign consultants are learning to expect a knock on the door.

May 02, 2023

FT: Financial Times –

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First, police raided the Beijing office of US due diligence group Mintz in March.

Weeks later, there was a similar visit to the Shanghai premises of Bain, the blue-chip US consultancy.

Police have also visited one of the China offices of expert network Capvision, according to at least four people familiar with the matter, as part of an emerging number of raids on international consultancies operating in the world’s second-largest economy.

Information on the raids is scant — Bain and Mintz have provided few details, while Capvision has not commented, although one person familiar with the matter said police visited its Shanghai office.

While Bain is known for its management consulting work, the incidents at Mintz and Capvision — a network whose members are available for chats with clients about an industry they have worked in — have thrown the spotlight on the world of corporate investigations in China, which also includes companies such as Control Risks, Kroll, FTI and Blackpeak.

Even in ordinary times, due diligence is inherently risky in China……….