China's New Anti-Espionage Law Raises Concerns for European Firms
• China's anti-espionage law is worrying for the EU because it has a broad definition of espionage that goes beyond traditional spying to include vague threats to "national security, honor and interests." This gives China wide discretion to crack down.
• The law encourages vigilantism by calling on citizens to report suspicious behavior, further expanding state control under Xi Jinping's rule.
• The law's ambiguity and lack of clear definitions create uncertainty for European companies operating in China. Actions once seen as harmless could now be crimes.
• Companies handling sensitive information like R&D, high-tech, military and more could face heightened scrutiny and risks under the law.
• The law conflicts with upcoming EU rules requiring companies to report on issues like forced labor in supply chains, putting firms in a difficult legal position.