China asks state firms to avoid travel to US, its allies

In recent weeks, a regulatory body that oversees government-run companies has told firms to only take secure, company-issued laptops meant for overseas use.

China asked some state-run enterprises to avoid business trips to the US and its allies and to take extra precautions to protect their devices if they need to travel, according to people familiar with the request.

In recent weeks, the State-Owned Assets Supervision and Administration Commission — a regulatory body that oversees about 100 government-run companies — has told some firms to only take secure, company-issued laptops meant for overseas use if traveling is necessary, the people said. They said the warning extended to countries in the Five Eyes intelligence-sharing pact: the UK, Canada, Australia and New Zealand.

The order also said that employees should have the company verify which files they are carrying on any trip and only store them on secure USB flash drives, two people familiar with the warning said separately, adding that SASAC didn’t specify how long the travel rules will apply. The commission didn’t respond to a fax requesting comment.

Chinese and American executives have become more cautious when traveling after the December arrest of Huawei Technologies Co. executive Meng Wanzhou in Canada on behalf of the US, and the subsequent detention of two Canadian citizens in China. The US has also stepped up efforts to catch and prosecute executives at Chinese companies that it alleges steal technology, which has resulted in several legal actions.

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Canada says that 13 of its citizens have been detained in China since Huawei Chief Financial Officer Meng Wanzhou was arrested last month in Vancouver at the request of the United States.

In January, state-owned Fujian Jinhua Integrated Circuit Co. and its Taiwan-based partner United Microelectronics Corp. were the first companies indicted under the US Justice Department’s new initiative. The companies pleaded not guilty. China has repeatedly denied accusations of trade secrets theft.

Meng was charged with conspiracy to defraud banks in relation to transactions that violated US sanctions against Iran, an allegation that comes as the Trump administration seeks to limit Chinese telecom companies from dominating 5G wireless networks. She has denied wrongdoing.