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Western fears of party influence on Chinese companies are overblown

Huawei, the Chinese telecoms equipment company, has aroused fresh concerns in the west about the role played by the Communist party in Chinese companies — whether these are either state-owned or private.

Western critics claim that companies in China are obliged to spy on foreign governments and companies, at the request of the party. Yet there is no provision in Chinese law requiring citizens to assist the party in spying on foreigners.

China’s national intelligence law, in particular article 7 on the obligation of Chinese citizens to support national intelligence work, is often misunderstood. First, it does not authorise pre-emptive spying; national intelligence work must be defensive in nature. Second, the law requires that intelligence agencies respect the rights and interests of individuals and entities. That includes Huawei. Moreover, it is not clear that there is any incentive for China to risk the future of Huawei, a Chinese brand recognised around the world, by asking it to engage in spying.

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