Key points:

• Chinese authorities released five employees from the U.S. due diligence firm Mintz Group, detained for over two years.
• The release follows a recent economic forum in Beijing aimed at attracting foreign investments.
• This comes as foreign direct investments in China decreased significantly, raising concerns among international businesses.

In a notable development, Reuters reports that Chinese authorities have released all five employees of the American corporate due diligence firm, Mintz Group, who had been detained for over two years. The move appears to be part of China's strategy to reassure foreign businesses amid a notable decline in foreign investments, which dropped by 27.1% in the first quarter of 2024 compared to the previous year.

The employees, all Chinese nationals, were initially detained in March 2023 during a broader crackdown on consultancy firms linked to multinational companies. The timing of their release coincides with the conclusion of an economic forum in Beijing, attended by high-profile foreign executives, where Vice Premier He Lifeng reiterated the government's commitment to inviting multinational corporations to explore business opportunities in China, according to TRT Global.

Mintz Group, which specializes in background checks and corporate investigations, expressed gratitude to the Chinese authorities stating, “We are grateful that our former colleagues can now be home with their families.” The company, however, has ceased operations in both mainland China and Hong Kong due to increased regulatory scrutiny that has targeted foreign research and consulting firms, including Bain & Company and Capvision Partners.

China’s crackdown has been part of a growing trend where national security has taken precedence over foreign investment, as highlighted by their earlier raids on firms conducting work linked to sensitive areas, such as reports on forced labor supply chains in Xinjiang, as noted in a BBC article.

The recent outreach efforts, including meetings with top foreign executives, highlight China’s intentions to counteract the erosion of foreign confidence in doing business in the region, amidst rising geopolitical tensions and trade frictions, as detailed in a report by NPR.