China's revised counterespionage law, which took effect on Saturday, has raised concerns among Japanese firms and individuals due to the potential risk of detention for 'unclear reasons', according to Japan Times. The amended law, which was first adopted in 2014 to guard state secrets, expands the scope of what constitutes spying activities to safeguard national security. Under the updated law, it is now possible for Chinese authorities to crack down on stealing and disseminating “documents, data, materials and items related to national security and interests”. It also obligates citizens to report spying activities and allows authorities to inspect the belongings of suspects.

The maximum punishment for espionage is death under China’s penal code. The revised legislation has caused anxiety among expatriates and foreign businesses given the lack of clarity regarding the definition of national security. This fear was further amplified by the March detention of a senior employee of Japanese drugmaker Astellas Pharma on suspicion of engaging in spying activities, but the details remain unknown. Several US consulting firms have also been raided in recent months. Chinese Premier Li Qiang, in a speech delivered at a World Economic Forum meeting in Tianjin, called for foreign investment to help China recover from the impacts of the COVID-19 pandemic, while also warning of punishments for rule-breakers. China Foreign Ministry spokeswoman Mao Ning also said that there is “no need to worry” as long as one abides by laws and regulations. Tetsuro Homma, head of the Japanese Chamber of Commerce and Industry in China, expressed concern about the lack of predictability, fairness and transparency in the Chinese market. He also said that his organization will monitor any negative impacts of the implementation of the amended anti-espionage law on business activities and take necessary actions. A survey by the European Union Chamber of Commerce reported that 64% of respondents said that doing business in China has become more difficult in 2022. Akio Takahara, a professor of Chinese politics at the Graduate School of Public Policy at the University of Tokyo, noted that Beijing has prioritized safeguarding national security amid an intensifying rivalry with Washington.

Naoki Tsukioka, senior economist at Mizuho Research and Technologies, pointed out that companies face the risk of detentions when authorities deem their information gathering constitutes spying. He advised expats to avoid secretly meeting with Chinese government, industry body and state-owned company officials for information exchange. Since a counterespionage law came into force in China in November 2014, 17 Japanese citizens have been detained for alleged involvement in spying activities. With the implementation of the revised law, it is important for Japanese business circles to ensure that predictability, fairness and transparency are maintained in the Chinese market. People should also follow laws and regulations to minimize the risk of detention for 'unclear reasons'.