The reason for the break is new legislation that took effect in China on July 1. This restricts the sharing of information that may be important to national security and increases the authorities’ ability to spy on Western companies.
The US government recently warned foreign companies operating in China that the measures are so vaguely defined that companies can get into trouble just for doing business.
For this reason, many Western companies are rethinking their interests in China. This includes Denton, which joined forces with Chinese counterpart Dacheng in 2015. This created a “mega-office” of 6,600 employees, of whom Dacheng provided 4,000.
A spokesperson for Dentons Europe has confirmed that the company will be removing Chinese characters from its logo and branding, both from the premises and from the website. This is related to “recent Chinese regulations for Chinese law firms, including measures related to internet security and data protection,” she wrote in an email.
Although Dacheng will stand on its own two feet, it will still be the “preferred partner” for clients who need legal assistance in China. “As our legal relationship changes, we will continue to work together to meet the needs of our customers in China and the more than 80 countries in which Dentons operates.” Dentons will maintain its Hong Kong branch.
Business is increasingly distorted in the clash between the United States and China. Bruce MacEwen of US consulting firm Adam Smith Esq says freedom of movement for foreign companies in China is getting “narrower and narrower”. Reuters news agency.
Earlier this year, the international consulting industry was stunned by raids by the Chinese branches of US industry peers the Mintz Group and Bain & Company. “For many companies, the potential damage to their reputation has long outweighed the potential economic benefits,” McEwen says.
The Chinese don’t just make doing business more difficult. On Wednesday, the US government will announce measures that will make it more difficult to invest in some industriesuntil the message New York times. It is about Western money that will be used in China for artificial intelligence, quantum computers and the development of advanced computer chips. This technology could easily fall into the hands of the Chinese Armed Forces.
There is mounting evidence of US capital being used to increase Chinese military capabilities without the US having the resources to stop these activities. New York timess Emily Benson, director of the Trade and Technology Project at the Center for Strategic and International Studies, a think tank in Washington, DC
According to the newspaper, the White House will also require companies in the United States to provide more clarity about investments in other industries, so that the US government can better monitor the money and knowledge flowing into China.
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