Chinese authorities have released all employees of a U.S. corporate due diligence firm detained in Beijing two years ago, in an apparent effort to reassure foreign firms operating in China amid a decline in foreign investment in the world's second-largest economy.
The detained Beijing employees of Mintz Group, all Chinese nationals, have been freed, according to a company spokesperson.
The announcement followed the recent China Development Forum in Beijing, which was attended by numerous foreign CEOs. Chinese officials used this platform to communicate that China remains open to foreign capital.
The local staff, five in total, were initially detained in March 2023, marking the start of a broader crackdown on consultancy and due diligence firms, including Bain & Company's Shanghai office and Capvision Partners.
Mintz, which specializes in background checks, fact gathering, and internal investigations, saw its employees detained just before the major economic forum, which negatively impacted foreign sentiment towards China. Reports indicated that Mintz had been investigating the possible use of forced labor in supply chains connected to China's Xinjiang region.
While China has expressed its commitment to welcoming foreign trade and investment, it emphasizes the need for such initiatives to support development.
The Mintz spokesperson expressed gratitude to the Chinese authorities for allowing their former colleagues to return home to their families.
Mintz operates 12 offices worldwide and employs over 280 investigators, as noted on its website.
In the lead-up to this year's China Development Forum, Chinese officials increased engagement with top foreign executives to reassure them of the appeal of the Chinese market. However, foreign direct investment in China dropped 27.1% in local currency terms in 2024 compared to the previous year, marking the steepest decline since the 2008 global financial crisis.
This outreach also occurred amid escalating tariffs with the United States, highlighting Beijing's determination to strengthen ties with global business leaders in response to potential disruptions from U.S. trade policies.