Chinese government says consulting firm Capvision's 'rectification' complete

Chinese regulators have deemed the "rectification" of Capvision Partners to be complete, the Shanghai-based firm said in a statement on Tuesday, after addressing national security risks raised by the government.

Conclusion of the months-long rectification process is the latest development in a sweeping crackdown Chinese authorities launched earlier this year on consultancy and due diligence firms in a bid to stop foreign states and corporations from obtaining intelligence on strategic sectors, such as technology and defence.

"Over these past months, under the guidance of the relevant government departments, our firm has earnestly reflected, identified holes and made up for shortcomings, building up a more systematic and complete compliance system," Capvision said in a statement published on its official WeChat account.

"Our company... will take the lead in resolutely defending the bottom line of security in the development of the country's consulting industry," it said.

Capvision, which specialises in putting experts in various industries in contact with firms and investors, announced in May the creation of a compliance committee to implement "rectification requirements" from the Chinese authorities, following police raids on its offices over what state media reported were national security issues.

Capvision received millions of dollars from overseas companies to lure experts to divulge sensitive information and even state secrets in exchange for high pay, according to state broadcaster CCTV, citing police.

Capvision in its statement on Tuesday said it realised the domestic consulting industry needed to "increase its awareness of safety issues and unexpected events, resolutely block lapses in management, and increase its capacity to proactively prevent" security risks.

Beijing has recently broadened the scope of national security work, amending anti-espionage and cross-border data transfer laws, among other measures, amid continued tensions with the US and several of its allies over a host of geopolitical, tech and trade issues.