Another Incident for Foreign Enterprises in China: AstraZeneca China President Under Investigation

The image of AstraZeneca's corporate office.(Made by ChatGPT)

People News: Wang Lei, president of British pharmaceutical company AstraZeneca's China division, was recently investigated by the CCP authorities, though related details have not been disclosed. Additionally, a South Korean citizen with the last name Lee was arrested in China on suspicion of violating the Counter-Espionage Law. As China intensifies its national security control measures, foreign companies in China face increasingly complex operational challenges.

According to Radio Free Asia, Wang Lei, president of the British pharmaceutical giant AstraZeneca's China division, is currently cooperating with related investigations in China. AstraZeneca China confirmed the matter in a statement issued on October 30, stating that the company continues to operate normally under the leadership of the current general manager, though the statement did not provide specific details about the investigation.

In an interview with Radio Free Asia on Friday (1st), Chinese scholar Lu Jun commented that there could be several reasons for the investigation of AstraZeneca’s China president, Wang Lei: “In recent years, the CCP has pursued a ‘wolf warrior’ diplomacy, adopting an unfriendly attitude toward Western countries, leading to numerous disputes. The CCP government sometimes detains foreign nationals or company personnel as hostages to exert pressure or engage in bargaining, as was typical in the case of former Canadian diplomat Michael Kovrig and another individual.”

Foreign Ministry Spokesperson Avoids Direct Response on Wang Lei Case

Chinese Foreign Ministry spokesperson Lin Jian did not provide further clarification regarding Wang Lei’s investigation at a regular press conference on October 31, only emphasizing that the CCP government will continue to welcome foreign investment and legally protect their rights. Wang Lei has worked at AstraZeneca for over ten years, during which the company has achieved significant growth in the Chinese market. Despite AstraZeneca’s strong performance in China, this is not the first time the company has faced challenges. In September, five current or former AstraZeneca employees were investigated for suspected illegal data collection and drug smuggling.

Wang Lei is a prominent figure among executives of multinational pharmaceutical companies in China, having worked at AstraZeneca for over a decade. According to Bloomberg, AstraZeneca’s double-digit growth in China is largely credited to Wang Lei.

Scholar Lu Jun noted that since the CCP implemented a revised Counter-Espionage Law last year, foreign enterprise employees in China have been subjected to official scrutiny from time to time: “The CCP’s security agencies heavily promote the idea of foreign espionage activities in China, conducting publicized smear campaigns by using actual cases and detentions to spread anti-foreign sentiment among citizens, promoting anti-American, anti-Japanese, anti-Korean, anti-European, and anti-Western narratives.”

The CCP’s newly revised Counter-Espionage Law officially came into effect on July 1 of last year. The revised law broadens the definitions and scope of actions that constitute espionage, covering areas such as information transmission, data transfer, and cyber-attacks, granting government agencies expanded investigative powers. The law has attracted considerable attention and discussion both domestically and internationally.

First Case of a South Korean Citizen Arrested for Violating CCP’s Counter-Espionage Law

At the same time, a South Korean citizen was arrested on suspicion of violating the CCP’s newly revised Counter-Espionage Law. On October 29, Yonhap News quoted a South Korean diplomatic source saying that this man in his fifties, residing in Hefei, Anhui Province, once worked for a Chinese semiconductor company. He is suspected of leaking company-related secrets to South Korea, and the case has now been handed over to prosecutors. This is the first case involving a South Korean citizen under the counter-espionage law in China. However, the CCP authorities have not provided further information.

Chinese businessman Zhang Shengqi told Radio Free Asia that many foreign enterprise employees in China attract attention from authorities to varying degrees: “Sometimes they cast a long line and wait, detaining individuals when they think the time is right to catch the bigger fish behind them.”

South Korean Citizen Lee, Formerly Employed by Samsung, Arrested

According to a report on Chosun Ilbo on Friday, a South Korean citizen working in the semiconductor industry in China was detained last December on suspicion of espionage. This has raised concerns since the CCP expanded its espionage suspect criteria under the revised Counter-Espionage Law last July. The South Korean citizen, identified as Mr. Lee, previously worked in the semiconductor division at Samsung Electronics and is suspected of leaking information from his former Chinese semiconductor company to South Korea.

Last year, the CCP increased the frequency of investigations into foreign companies, especially concerning data security, anti-trust, and corruption. Notable examples include an investigation into American consulting firm Capvision, which was accused of unlawfully obtaining data, subsequently restricting its business in China. Issues related to sensitive technology and data protection also affected Microsoft-owned LinkedIn and Micron Technology, both of which faced scrutiny for “suspected violations of data security laws.”