In a significant move aimed at restoring foreign confidence, China has released all five employees of the U.S.-based due diligence firm Mintz Group, who had been detained in Beijing for nearly two years. The employees, all Chinese nationals, were taken into custody in March 2023, coinciding with heightened scrutiny of consultancy and due diligence firms operating in the country. Their release comes at a pivotal moment for Beijing, aligning with the recently concluded China Development Forum, which saw attendance from numerous foreign CEOs and business leaders.
The Mintz staff’s detention was part of a broader crackdown targeting firms such as Bain & Company and Capvision Partners, which have been involved in corporate investigations related to human rights concerns in China. Mintz, a company specializing in background checks and internal investigations, was reportedly probing potential forced labor practices in supply chains linked to Xinjiang—a sensitive topic for Chinese authorities. As reported by Reuters, this scrutiny had cast a shadow over the environment for foreign businesses in China, raising concerns about the country’s openness to international firms.
In a statement shared with Reuters, a Mintz spokesperson expressed gratitude for the release of their colleagues, saying, “We are grateful to the Chinese authorities that our former colleagues can now be home with their families.”
This development comes as China seeks to reverse a decline in foreign investment, which saw a sharp 27.1% drop in 2024, the largest decrease since the global financial crisis of 2008. The release of Mintz employees is seen as part of Beijing’s broader efforts to ease concerns and highlight the country’s continued receptiveness to foreign capital, particularly ahead of escalating trade tensions with the United States.
During the China Development Forum, Chinese officials emphasized the nation’s commitment to foreign trade and investment, despite the growing challenges posed by national security priorities. The forum served as a key opportunity for Chinese officials to reaffirm their message to global business leaders that China remains a competitive market for foreign enterprises.
As China grapples with a combination of slowing economic growth, mounting geopolitical tensions, and internal policy shifts, the government’s efforts to rebuild trust with the international business community are becoming increasingly crucial. While the Mintz case underscores the risks companies face in China, its resolution may serve as a signal that Beijing is willing to balance national security concerns with the need to attract foreign investment and foster economic recovery.
