The British multinational advertising giant WPP has fired a China executive of its advertising procurement department who is currently detained in China along with two former employees of the firm on suspicion of bribery and is conducting an internal investigation into the matter, the company stated on Oct. 24.
The Economic Crime Investigation Division of the Shanghai Police said on Oct. 21 that three suspects from an unnamed advertising company were being detained on suspicion of bribery.
Later, it was reported that the police statement referred to the detention of one current employee and two former employees of GroupM, an advertising procurement department of WPP, in China, according to Chinese media.
CCP’s Anti-Espionage Actions
This is following the formal arrest on Oct. 19 for alleged espionage of a Japanese businessman in his 50s who worked for Japanese drugmaker Astellas Pharma in China. He has been detained by the Chinese police since March.“We have also strongly urged China for an immediate release at various levels, and we will continue to do so,” Japanese Chief Cabinet Secretary Hirokazu Matsuno said in response.
With its current sluggish economy, China is in great need of foreign production orders, technology, management, and funds, so it has relaxed restrictions, such as those on foreign investment in the manufacturing sector.
However, ruling Chinese Communist Party (CCP) leader Xi Jinping has continued to emphasize the CCP’s political security.
The CCP recently revised its Anti-Espionage Law, further targeting foreign nationals, foreign businesses in China, and Chinese nationals who have overseas connections. The law came into effect on July 1.
This year, there have been many cases of raids on foreign companies’ offices in China and arrests of foreign companies’ employees, such as the detention of employees of the U.S. investigation firm Mintz Group, which has scared off foreign business people.
Some foreign company executives are now afraid to travel to China for business.