As China seeks to rebuild its economy after COVID-19, it is likely to target its own technology scene under President Xi Jinping’s Made in China 2025 scheme, which aims to make China the largest high-quality company in the world producer of goods by 2050 This is likely to create a number of lucrative opportunities for foreign investors – but buyers beware.

“The US blacklisting of several Chinese technology companies – including HikVision, SenseTime and Megvii – due to their links to human rights abuses in Xinjiang illustrates the reputational risks for institutional investors,” said Maplecroft human rights analyst Sofia Nazalya. “Most importantly, current and emerging legislation that lifts or imposes sanctions or bans on corporations linked to human rights abuses underscores just how risky it is to get into bed with tech companies that have become entangled in state surveillance.”

Foreign companies in China are also forced to operate in an environment “with little respect for privacy and transparency,” with the state actively collecting citizens’ data through the implementation of its controversial Social Credit System (SCS).

"With the threat of the virus re-emerging, companies are at risk of being penalized under the SCS if they do not implement social distancing measures in the workplace," Ms Nazalya said. "Similarly, if employees are found to be endangering public safety, for example by ignoring current travel restrictions or hiding their medical history, they will be at risk of having their social credit rating pegged."

"This has direct implications for business, given that bad employee behavior and a poor social credit record would in turn lower the corporate credit rating of their employers."

China has greatly increased its surveillance efforts with the nominal goal of fighting COVID-19, with CCTV cameras installed outside the homes of people under quarantine and drones warning citizens to wear masks as the new normal.

"While China is keen to argue that a comprehensive approach to surveillance will be needed to protect public health, the implications for both individuals and corporations will be far-reaching," Ms Nazalya said. "Not only will China's 'new normal' be characterized by further erosion of individual anonymity and privacy, increased surveillance will see companies under a state-run microscope unlike anything they've experienced before."