Chinese authorities raided Mintz Group’s Beijing office, detaining five local staff and shutting down its China operations, the company said in a statement.
The attack, people familiar with the matter said, comes as China’s government prepares to host a host of international chief executives including Apple’s Tim Cook and HSBC’s Noel Quinn for an annual investor conference this weekend.
“Mintz Group has not received official notification of the case against the company and has requested the authorities to release the employees,” the company said.
Mintz said in a statement that it has retained legal counsel to engage with authorities and provide support to staff and their families.
There was no immediate comment from the US Embassy in Beijing.
Randal Phillips, who heads the Mintz Group’s activities in Asia, is listed on the group’s website as the former deputy head of the Central Intelligence Agency in China. Phillips is not based in China and it is unclear if the Beijing attack is related to him.
The attack follows frayed relations between Washington and Beijing, which have worsened after a Chinese spy balloon flew over the US.
The US Congress this week also grilled the chief executive of Chinese-owned short video app TikTok over links to Beijing amid a growing bipartisan push to ban apps that pose security threats.
China has expressed strong opposition to the forced sale of TikTok.
Mintz said it has been licensed to “conduct legal business in China, where we have always operated transparently, ethically and in compliance with applicable laws and regulations”.
The company said it was ready to cooperate with Chinese authorities to resolve any misunderstandings that may have led to the attack. “For now, we continue to support our clients in Asia through other offices in the region,” the company said.
A former member of Mintz’s staff said he had noticed the official attitude towards the company was harsh during the pandemic, when China largely closed its borders and implemented strict zero-Covid controls.
“You don’t know where the red line is,” said the staffer, whose job is mostly to translate Chinese media reports.
China has detained investigators, analysts and journalists with ties to foreign companies in the past. In 2018, Chinese authorities detained two Canadians – Michael Spavor, a specialist in North Korea, and Michael Kovrig, a senior adviser to the International Crisis Group, a research organization.
The arrest follows the detention of Meng Wanzhou, the chief financial officer of telecommunications equipment maker Huawei, in Canada in connection with an extradition case. All three were eventually released.
Beijing this month has launched a charm offensive to attract foreign investors after economic growth slowed due to tight pandemic controls and heightened tensions with the US.
Apart from this weekend’s China Development Forum, which will also be attended by international figures including Henry Kissinger, Beijing is inviting global investors to the annual international Boao Forum for Asia in the southern province of Hainan next week.
Additional reporting by Ryan McMorrow in Beijing, Primrose Riordan in Hong Kong and Edward White in Seoul