China bans Wells Fargo banker from leaving the country

CNN

10 hours ago

An Atlanta-based banker working for Wells Fargo has been prevented from leaving China, the latest incident that threatens to amplify concerns among Western executives about the potential consequences of visiting the world's second-biggest economy.
Chinese authorities said Monday the exit ban placed on Wells Fargo executive Chenyue Mao is part of a criminal investigation.
'Ms. Mao Chenyue is involved in a criminal case being handled by Chinese authorities, who have lawfully imposed exit restrictions on her,' Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, said Monday following a regular press conference.
It's not clear the target of the criminal case, nor how Mao is believed to be linked to it.
'According to Chinese law, the case is under investigation, and Ms. Mao is temporarily unable to leave the country and is obligated to cooperate with the investigation,' the spokesperson for China's Ministry of Foreign Affairs said. 'During the investigation, the authorities will ensure that her legal rights are protected.'
Mao has been employed by Wells Fargo since 2012, according to her LinkedIn profile.
Born in Shanghai and based in Atlanta, Mao leads Wells Fargo's international factoring business and advises multinational companies on cross-border capital strategies, according to FCI, a global network of companies formerly known as the Factors Chain International. Mao was recently elected to be the chairwoman of FCI.
'We are closely tracking this situation and working through the appropriate channels so our employee can return to the United States as soon as possible,' Wells Fargo told CNN in a statement.
Wells Fargo has since suspended all travel to China, according to The Wall Street Journal, which first reported news of Mao being blocked from leaving the country. The bank declined to comment further on the incident.
An automated response on Monday from Mao's email indicates she is overseas.
'Traveling international on business with time difference, may delay in responses, will respond as soon as I'm able to,' the automated response said.
News of the exit ban placed on the Wells Fargo banker comes as a Chinese American man working for the Commerce Department has been prevented from leaving the country, according to the Washington Post.
The Commerce Department employee, working in the agency's Patent and Trademark Office, was visiting family in China several months ago and failed to disclose on his visa application that he worked for the US government, the Post reported.
The Commerce Department referred CNN's inquiries to the US State Department. The State Department did not respond to a request for comment on the Commerce employee or the Wells Fargo banker.
The State Department currently has a 'level 2' travel advisory for China, indicating Americans should 'exercise increased caution' when traveling to Mainland China due to 'arbitrary enforcement of local laws, including in relation to exit bans.'
The incidents are likely to raise concern in C-Suites and among boards of directors about the risks of visiting China.
'This has everyone jittery again, nervous about traveling,' Sam Stein, president of the US-China Business Council, told CNN in a phone interview on Monday.
Stein, who previously worked as a US diplomat in China and advised companies on China matters at the law firm Covington and Burling, said Western companies are often in the dark about the reasons behind exit bans imposed by China.
'This could have a chilling effect on executive travel to China – unless China can be more transparent,' Stein said. 'China has a small window. Now is the time to come out and explain the circumstances where someone can be placed on an exit ban. China really needs to step up.'
Jiakun, the Chinese Ministry of Finance spokesperson, stressed that both Chinese citizens and foreigners 'must abide by' Chinese law while inside the country.
'This is an individual judicial case, and China will continue to welcome people from all countries to visit and do business, while upholding their rights in accordance with the law,' the spokesperson said.