The Second Session of the Standing Committee of the 14th National People’s Congress voted and passed on April 26, 2023 the newly revised “Anti-Espionage Law of the People’s Republic of China” (the New Anti-Espionage Law). The New Anti-Espionage Law, which will take effect on July 1, 2023, expands the scope of espionage activities, establishes broad criteria for determining espionage behavior, grants extensive investigative power to national security agencies, and clarifies the legal liability for espionage activities.

Against the backdrop of increasingly tense China-US relations and a growing number of cases involving suspected espionage activities, multinational enterprises outside China (foreign enterprises) should pay particular attention to related compliance risks.