Wells Fargo Exit Ban Revives Fears About Doing Business In China

Fears that employees of foreign firms could become entangled with Chinese authorities have resurfaced following news that a U.S. bank employee at Wells Fargo has been banned from leaving the country, Antoni Slodkowski and Scott Murdoch reported for Reuters.

Wells Fargo has since suspended all travel to China. I Photo: MiosotisJade Wikimedia Commons

Business groups, diplomats, and overseas executives say the incident is part of a long-standing pattern that had appeared to ease as Beijing worked to promote foreign investment and bolster its slowing economy.

“Such stories can raise concerns among foreign businesses regarding travel to China,” said Jens Eskelund, president of the European Union Chamber of Commerce in China (EUCCC).

“At a time when China is proactively trying to attract foreign investment, it sends something of a mixed signal.”

Wells Fargo has since suspended all travel to China, a person familiar with the matter told Reuters. Shanghai-born Chenyue Mao, who leads the bank’s international factoring business, was subjected to the exit ban after entering China in recent weeks, according to The Wall Street Journal.

She is a U.S. citizen, a source told Reuters.

China’s foreign ministry spokesperson Lin Jian said at a press briefing that he was not aware of the Wells Fargo case but added that China remains committed to providing a welcoming environment for foreign companies, as reported by Casey Hall and Liz Lee for Reuters.