Companies Vigilant As China Expands Wide-Ranging Anti-Espionage Legislation

Exit Bans Also Widened

The recent arrest of a local Japanese employee of Astellas triggered alarms for pharma firms operating in China, while a newly-expanded and wide-ranging anti-espionage law means that sponsors must pay careful attention to overseas data transfers, especially related to clinical trials, business intelligence and due diligence, as well as other activities.

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China's expanded anti-espionage law means heightened risks and fewer recourses for foreign nationals • Source: Shutterstock

On 26 April, the Standing Committee of China’s National People’s Congress passed into law the latest expansion of wide-ranging anti-espionage legislation, in the central government's latest move to prioritize national security ahead of economic growth.

The move was especially significant given that in March, major Japanese pharma firm Astellas Pharma, Inc. acknowledged that one...

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