CM – Western expats are no longer safe in China

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Beijing’s swift release of two Canadians held on trumped-up charges , confirms that Xi Jinping is ready to bow to the level of the late Libyan dictator Muammar al-Gaddafi and conduct hostage diplomacy.

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Western expats are no longer safe in China

Western expats are no longer safe in China …

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Elisabeth Braw

After almost three years in Chinese prisons, Michael Kovrig and Michael Spavor were released and allowed to return to Canada. But the fact that they were released immediately after Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei, reached an agreement with the U.S. Department of Justice to free them from house arrest in Canada, shows how the detention of Kovrig and Spavor really is never was. as Beijing pretended to pose a risk to China’s national security.

In fact, the fate of Kovrig and Spavor is a terrifying message to all Western companies and organizations operating in China: Any of your employees can be arrested and held hostage for years when Beijing feels offended by a Western government. Companies should therefore think twice about whether it is safe to send employees to China.

It always seemed strange that Chinese authorities suddenly claimed in early December 2018 that two Canadians had spied on China and arrested them quickly – just days after Meng (who is also the daughter of the Huawei founder) was arrested in Canada on a US arrest warrant.

After almost three years in Chinese prisons, Michael Kovrig and Michael Spavor were released and allowed to return to Canada. But the fact that they were released immediately after Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei, reached an agreement with the U.S. Department of Justice to free them from house arrest in Canada, shows how the detention of Kovrig and Spavor really is never was. as Beijing pretended to pose a risk to China’s national security.

In fact, the fate of Kovrig and Spavor is a terrifying message to all Western companies and organizations operating in China: Any of your employees can be arrested and held hostage for years when Beijing feels offended by a Western government. Companies should therefore think twice about whether it is safe to send employees to China.

It always seemed strange that Chinese authorities suddenly claimed in early December 2018 that two Canadians had spied on China and arrested them quickly – just days after Meng (who is also the daughter of the Huawei founder) was arrested in Canada on a US arrest warrant.

While the allegations against Meng were grave and backed by evidence – the US government argued that it was a US -Bank misled about Huawei’s dealings with Iran, which led the bank to unwittingly break U.S. sanctions on Iran by having Huawei as a client – charges against Kovrig and Spavor were thin. The Chinese authorities did not produce any evidence and international diplomats were excluded from their trials.

But Beijing always pretended the alleged crimes of Kovrig and Spavor were real, and went so far as to convict Spavor and Was sentenced to 11 years in prison. Then, just hours after Meng signed a treaty with the U.S. government admitting charges and being released from her comfortable Canadian house arrest (which included the freedom to roam Vancouver with family and even friends dine if violated) of the COVID-19 rules) China released Kovrig and Spavor from their far less comfortable detention. Upon their release, Beijing effectively admitted that the allegations were fabricated and that the men were being held as a bargaining chip.

Upon the release of Kovrig and Spavor, Beijing effectively admitted that the allegations were fabricated and the men were being held as a bargaining chip .

As long as Kovrig and Spavor were accused of espionage, Western companies argued that they could continue to send their employees to China. Why shouldn’t they? The two men were officially arrested on suspicion of having committed crimes. And for many companies, China is the most important export market. For others, the country is an important production location. Many also have joint ventures in the country, although surprisingly few have relocated their research and development activities there. (Guess why.) In fact, as recently as May this year, the Financial Times reported that Western leaders in China had succumbed to Stockholm Syndrome, the special condition in which prisoners develop sympathy for their kidnappers. Although many western companies have recently been punished by Beijing for alleged abuse, z.

These executives had better wake up. By releasing Kovrig and Spavor hours after Meng’s release, Beijing signaled to the world that the arrest of the two Canadians was never about alleged espionage. They were arrested because they were Canadian, happened to be in China when Meng was arrested, and were in jobs where allegations of espionage wouldn’t sound entirely outlandish (Kovrig, a former diplomat who worked for the International Crisis Group, and Spavor, a businessman with ties to North Korea). In other words, they were random targets held hostage in order to achieve a diplomatic goal.

If something happened to an expat worker in China (including Hong Kong), not only would the employer suffer reputational damage; it could be held legally liable.

With this type of hostage diplomacy, China has entered the extraordinarily dubious society of Muammar al-Gaddafi’s Libya. In 2008, Gaddafi’s stubborn son Hannibal and his wife were arrested in Switzerland after employees of the luxury hotel they were staying at reported being attacked by the couple. Although they were later allowed to leave Switzerland, their arrest angered Gaddafi so much that he declared jihad against Switzerland – and prompted the arbitrary arrest of two Swiss businessmen who happened to be in Libya.

The effects of China’s decline in this dubious company could wreak havoc on global business. Internationally operating companies are certainly used to various dangers such as kidnappings, hostage-taking and terrorist attacks. There is an entire industry that trains executives on how to best avoid danger when working or traveling in high risk countries such as Nigeria, Libya and Angola, where the perpetrators of the crimes are typically criminal gangs.

Rarely arrested the regime used a random Westerner to force that person’s home government. Iran is currently holding Nazanin Zaghari-Ratcliffe, a British-Iranian charity worker, and various other Western citizens (often native Iranians who have been naturalized in Europe or the US) in custody. It’s a tragedy for the prisoners, but most western companies don’t do business in Iran anyway.

China is different precisely because the companies want to be there. In 2019 alone, 40,888 foreign companies invested in China, including nearly 14,000 in retail and nearly 5,400 in manufacturing. Now that China has admitted its readiness for hostage diplomacy through its actions, these newly arrived companies will think twice about sending staff there. This also applies to companies that have been active in China for a long time and companies that are thinking about doing business there.

Yes, there are CEOs who play fast and easy and are ready to risk business in China because the country brings unbeatable income and because the risk that one of its employees will become a victim of diplomacy hostage is low. But while CEOs can have such beliefs, they have a legal duty of care towards their employees. In turn, the company’s boards of directors consider not only the likely loss of reduced business in China, but also the damage to a company’s brand if it is discovered that employees – even willing ones – have been put at risk or politically sensitive company, I would not send executives to China, ”a senior executive with two decades of experience in China told me. “Right now, Australian, UK and US companies should be extra careful, especially when it comes to key people such as major shareholders, owners, CEOs, CFOs and board advisors. The same applies to business with important government contracts in their home country as well as to high-tech companies, companies with a focus on large-scale raw materials and companies with military contracts. It’s too dangerous for now. I would also be wary of Hong Kong. ”

Should something happen to an expat employee in China (including Hong Kong), the employer would not only suffer reputational damage; it could be held legally liable. In 2019, an Italian court set a precedent that many judges and jurors must now consult. The judge ruled in the case of four Italian engineers who were kidnapped by the Islamic State in 2015 while they were working for the Italian oil construction company Bonatti in Libya – and blamed Bonatti’s CEO, two directors and the Libyan head of the company. All four made admissions and received suspended sentences.

The choice facing CEOs of Western companies is now clear: the confrontation between China and Western countries is increasing, and China is ready to go hostage diplomacy. Sure, the chances of any of your employees being selected at random by the Chinese authorities may be slim, but from now on there is always risk – and while you can try to reduce the risk of your employees being kidnapped by gangs in Nigeria ‘There is nothing you can do to protect them from a Chinese show trial.

Should such a situation arise, your company will be in the news for months, maybe years – and you can go to jail for it come. Especially if your business is based in the United States, it could face devastating legal proceedings. Yes, business people will continue to travel to China and may even choose to live there. But starting this month, that number is likely to drop dramatically. Your absence will do far more harm to the Chinese economy than Meng Wanzhou’s plush Canadian house arrest, incidentally – Threats focused. She is also a member of the UK’s National Preparedness Commission. Twitter: @elisabethbraw

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