WASHINGTON: US intelligence warned companies operating in China on Friday (Jun 30) over the impact of Beijing's new counter-espionage law coming into force on Jul 1. The National Counterin
The National Counterintelligence and Security Center said the law, which aims to protect China's national security secrets, gives Beijing"expanded legal grounds for accessing and controlling data held by US firms in China".
US companies and individuals could"face penalties for traditional business activities" if Chinese authorities label them espionage or says they are assisting foreign sanctions on China, the NCSC said in an advisory notice. NCSC said the law expands China's definition of espionage from covering state secrets to any documents or data that the government says could be labelled national security-related"due to ambiguities in the law".
The following month, US consulting giant Bain & Company said employees at its Shanghai office had been questioned.
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