Factbox-Foreign firms' executives entangled in Chinese probes
Below are some other recent examples:
- A Beijing court this week sentenced a Japanese employee of Astellas Pharma to 3-1/2 years in prison. The man had been detained since March 2023 on suspicion of spying and had been indicted about a year ago.
- In March, Chinese authorities released employees of U.S. corporate due diligence firm Mintz Group detained in Beijing two years ago. Five of the firm's local staff were detained in a raid that turned out to be the beginning of a sweeping crackdown on consultancy and due diligence firms, including Bain & Company's office in Shanghai. A Singaporean executive at Mintz was also prevented from leaving China, sources told Reuters. China fined Mintz about $1.5 million in July 2024 for doing "unapproved statistical work".
- Anglo-Swedish pharmaceutical firm AstraZeneca saw its China president Leon Wang detained and placed under investigation in 2024, with little information about what the probe was about.
Wang, who grew up in China, was a high-profile executive often quoted in the Chinese business press. AstraZeneca's CEO said in February that the company was not permitted to speak with Wang, who has been placed under extended leave since December. Chinese media had reported that AstraZeneca was under probe since 2021, suspected of fabricating genetic testing results related to the firm's lung cancer drug Tagrisso and of insurance fraud.
- A senior Nomura Holdings banker overseeing the Japanese firm's investment banking operations in China was ordered not to leave the mainland, sources told Reuters in late 2023. The exit ban was lifted the following year allowing Charles Wang Zhonghe, China investment banking chairman at Nomura, to return to Hong Kong, where he was previously based, according to the Financial Times.
- Michael Chan, a senior executive at U.S. risk advisory firm Kroll, was barred from leaving the Chinese mainland, the Wall Street Journal reported in September 2023. The Hong Kong passport holder was assisting in an investigation dating back a few years, the newspaper reported, citing people familiar with the matter. Neither Kroll nor Chan was the target of the investigation, according to the newspaper.
- A Singapore-based UBS wealth manager was prevented from leaving China in 2018. The executive was asked to remain in the country to meet with local authorities, Reuters reported at that time. The uncertainty surrounding the exit ban on the wealth manager had led the Swiss bank and several of its rivals to require their private banking staff to carefully consider trips to China.
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The Hill
10 minutes ago
- The Hill
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
BANGKOK (AP) — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.
San Francisco Chronicle
10 minutes ago
- San Francisco Chronicle
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
BANGKOK (AP) — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.
Washington Post
11 minutes ago
- Washington Post
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
BANGKOK — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.
