China Releases Five Detained Staff of US Due Diligence Firm

BEIJING, 25 March 2025 (BSS/AFP) – China has released five local employees of an American due diligence firm who had been detained for more than two years amid a broader crackdown on foreign consultancies operating in the country, the company confirmed on Tuesday.

In March 2023, Mintz Group announced that Chinese authorities had detained five Chinese staff members from its Beijing office, forcing the firm to halt its operations in the country.

China’s foreign ministry later stated that the company was under investigation for suspected “illegal operations,” though no further details were provided.

“We understand that the Mintz Group Beijing employees who were detained, all Chinese nationals, have now all been released,” a spokesperson for the company said in a statement on Tuesday.

“We are grateful to the Chinese authorities that our former colleagues can now be home with their families.”

Headquartered in New York, Mintz Group specialises in corporate investigations, including fraud, corruption, and workplace misconduct, as well as conducting background checks. The firm operates across 12 offices worldwide with over 280 investigators.

Crackdown on Foreign Consultancies

Mintz was among several US-linked firms targeted in China’s 2023 clampdown on foreign consultancies. Other companies affected included the American management consultancy Bain & Company and the global advisory firm Capvision.

At the time, analysts warned that Beijing was shifting its focus towards national security concerns over maintaining an open business environment. The move raised alarm among multinational corporations operating in China, as increased scrutiny on due diligence firms signalled tighter restrictions on foreign access to corporate and market intelligence.

Observers note that the release of the detained staff may indicate an attempt by Beijing to ease tensions with the international business community. However, foreign investors remain cautious, as China’s strict regulations on data access and business investigations continue to pose challenges for international firms.