Caught foreign consultant spying for UK’s MI6 intelligence service, says China

China has detained the head of an overseas consulting firm, accusing them of spying on behalf of the British government, thereby drawing attention to an industry that has been under scrutiny due to Beijing’s national security crackdown. According to a Bloomberg report, citing China’s Ministry of State Security (MSS), the individual, identified as Huang, allegedly worked for the UK’s MI6 intelligence service and engaged in espionage activities, providing the British government with state secrets and intelligence. The MSS did not disclose the consulting firm’s name or Huang’s nationality. The inquiry highlights Beijing’s ongoing examination of the consulting industry, which, in the past year, has faced increased scrutiny due to an anti-espionage crackdown. The MSS has frequently accused this sector of leaking classified information. The turbulence within a field utilised by money managers for navigating Chinese markets has raised concerns among certain investors. They worry that President Xi Jinping’s emphasis on security may impede his efforts to attract foreign capital and stimulate economic growth. According to the report, citing MSS, the Chinese agency said MI6 approached Huang in 2015 for intelligence cooperation, directing the consultant to travel to China multiple times, collect intelligence and identify potential assets. The UK spying agency trained and equipped the person to carry out espionage. Meanwhile, the British government has said Chinese spies are targeting its officials in sensitive positions in politics, defence and business as part of an increasingly sophisticated spying operation to gain access to secrets, according to Reuters.

Recently, a researcher in Britain’s parliament denied he was a Chinese spy.

China repeatedly condemned the assertions with a foreign ministry spokesperson saying they were “entirely groundless.”

“We urge the UK to stop spreading disinformation and stop political manipulation and malicious slander against China,” said foreign ministry spokesperson Mao Ning when queried at a press briefing.

This marks the first instance in which the MSS has accused British espionage on its WeChat account since it began posting in August. The ministry had previously disclosed information about alleged spies cooperating with US authorities.

Security officials conducted a visit and search at the Shanghai office of the expert-research company Capvision in May, asserting that the company was aiding foreign entities in espionage efforts. In August, Chinese authorities imposed a fine on the US due diligence firm Mintz Group for unlawful data collection, following months of office raids in Beijing and the detention of five Chinese employees. In April, the American consultancy Bain & Co. reported that Chinese authorities had interrogated staff at its Shanghai office. Beijing has escalated its efforts to combat spying and implemented a new counter-espionage law that took effect last year. This legislation broadens the scope of activities classified as spying, heightening risks for foreign companies. While China’s formidable spy agency typically operates discreetly, it has recently assumed a more public profile, even launching a comic series based on real-life espionage cases last Sunday. The MSS has confirmed that consular visits have been arranged following the enforcement of criminal measures against Huang. With inputs from agencies