Latest news with #foreignfirms
Yahoo
18-07-2025
- Business
- Yahoo
Wells Fargo exit ban revives fears about doing business in China
By Antoni Slodkowski, Casey Hall and Scott Murdoch BEIJING/SHANGHAI/SYDNEY (Reuters) -Fears that employees of foreign firms risk entanglement with Chinese authorities have resurfaced after news that an employee of U.S. bank Wells Fargo has been banned from leaving the country. Business groups, diplomats and overseas executives say the incident is part of a long-term trend that had appeared to ease off as Beijing pushed to promote its appeal to foreign commerce to bolster its slowing economy. "Such stories can raise concerns of foreign businesses regarding travel to China," said Jens Eskelund, president of the European Union Chamber of Commerce in China. "At a time when China is proactively trying to attract foreign investment it sends something of a mixed signal." Wells Fargo has suspended all travel to China after the incident, a person familiar with the matter told Reuters. Shanghai-born Chenyue Mao, who spearheads the bank's international factoring business, was subjected to the ban after she entered China in recent weeks, the Wall Street Journal reported. She is a U.S. citizen, a source told Reuters. An emailed request for comment sent to Mao received an automated response saying she was "travelling international on business". China's foreign ministry spokesperson Lin Jian told a press briefing on Friday that he was not aware of the Wells Fargo matter, adding that China was committed to providing a welcoming environment for foreign companies to do business. The U.S. embassy in Beijing said it could not comment on the specifics of the case due to privacy and other reasons. "We have raised our concern with Chinese authorities about the impact arbitrary exit bans on U.S. citizens have on our bilateral relations and urged them to immediately allow impacted U.S. citizens to return home," a spokesperson for the embassy added. The United States does not provide an official figure for how many citizens are detained abroad, but The Dui Hua Foundation, a nonprofit that advocates for the release of political prisoners in China, estimates there are more than 200 Americans in China alone who are wrongfully detained or facing coercive measures, such as exit bans. The U.S. State Department updated its travel advisory for mainland China in November 2024 saying visitors should "exercise increased caution" due to "arbitrary enforcement of local laws, including in relation to exit bans." ROUTINELY USED In a survey conducted by the EU Chamber of Commerce in China of its members last year, 9% of respondents reported challenges attracting foreign nationals to work in China due to concerns related to personal safety and/or civil and criminal liability such as company raids, arbitrary arrests or exit bans. Of the 128 respondents, 4% said business travel from China to their company's headquarters had been negatively impacted due to employees being unable to leave China due to exit bans. There is no official data in China on the number of individuals subject to exit bans. But non-profit organisation Safeguard Defenders estimates bans have shot up over the past decade and that "tens of thousands" of people - the vast majority Chinese nationals - face such bans at any one time, citing court data on civil and criminal cases. A 2022 academic study found 128 cases of foreigners faced exit bans between 1995 and 2019, including 29 Americans and 44 Canadians. Around a third of the bans were business related. James Zimmerman, a lawyer based in Beijing and former chairman of the American Chamber of Commerce in China, said Chinese authorities routinely use exit bans to prevent witnesses or suspects viewed as flight risks from exiting mainland China. "Most of the time, there is a legitimate legal basis for the exit ban, while there are indeed instances of misuse of the process by the government authorities, including for political reasons," Zimmerman said While there are procedures in place to have the ban lifted, a lack of transparency and absence of a workable bail system make it a time-consuming and challenging process, he added. Other incidents of bans in recent years have embroiled executives from Japanese investment bank Nomura Holdings, U.S. risk advisory firm Kroll and Swiss wealth manager UBS. Yet some professional advisors say travel to China has become safer than several years ago, said Benjamin Qiu, Co-Chair, Asian Affairs Committee at the New York City Bar Association. Unless your company has been specifically targeted by the state or a state-owned entity, risks are low, said Qui, adding that ethnic Chinese travellers do face heightened risk. Other executives are hoping the Wells Fargo incident does not presage a wider crackdown. "We do so much business in China and travel there so much, we can't afford not to. I would hope this is just a one-off," said a capital markets banker at a Western bank in Hong Kong, declining to be named as the person was not authorised to talk to the media. Sign in to access your portfolio
Reuters
18-07-2025
- Business
- Reuters
Wells Fargo exit ban revives fears about doing business in China
BEIJING/SHANGHAI/SYDNEY, July 18 (Reuters) - Fears that employees of foreign firms risk entanglement with Chinese authorities have resurfaced after news that an employee of U.S. bank Wells Fargo (WFC.N), opens new tab has been banned from leaving the country. Business groups, diplomats and overseas executives say the incident is part of a long-term trend that had appeared to ease off as Beijing pushed to promote its appeal to foreign commerce to bolster its slowing economy. "Such stories can raise concerns of foreign businesses regarding travel to China," said Jens Eskelund, president of the European Union Chamber of Commerce in China. "At a time when China is proactively trying to attract foreign investment it sends something of a mixed signal." Wells Fargo has suspended all travel to China after the incident, a person familiar with the matter told Reuters. Shanghai-born Chenyue Mao, who spearheads the bank's international factoring business, was subjected to the ban after she entered China in recent weeks, the Wall Street Journal reported. She is a U.S. citizen, a source told Reuters. An emailed request for comment sent to Mao received an automated response saying she was "travelling international on business". China's foreign ministry spokesperson Lin Jian told a press briefing on Friday that he was not aware of the Wells Fargo matter, adding that China was committed to providing a welcoming environment for foreign companies to do business. The U.S. embassy in Beijing said it could not comment on the specifics of the case due to privacy and other reasons. "We have raised our concern with Chinese authorities about the impact arbitrary exit bans on U.S. citizens have on our bilateral relations and urged them to immediately allow impacted U.S. citizens to return home," a spokesperson for the embassy added. The United States does not provide an official figure for how many citizens are detained abroad, but The Dui Hua Foundation, a nonprofit that advocates for the release of political prisoners in China, estimates there are more than 200 Americans in China alone who are wrongfully detained or facing coercive measures, such as exit bans. The U.S. State Department updated its travel advisory for mainland China in November 2024 saying visitors should "exercise increased caution" due to "arbitrary enforcement of local laws, including in relation to exit bans." In a survey conducted by the EU Chamber of Commerce in China of its members last year, 9% of respondents reported challenges attracting foreign nationals to work in China due to concerns related to personal safety and/or civil and criminal liability such as company raids, arbitrary arrests or exit bans. Of the 128 respondents, 4% said business travel from China to their company's headquarters had been negatively impacted due to employees being unable to leave China due to exit bans. There is no official data in China on the number of individuals subject to exit bans. But non-profit organisation Safeguard Defenders estimates bans have shot up over the past decade and that "tens of thousands" of people - the vast majority Chinese nationals - face such bans at any one time, citing court data on civil and criminal cases. A 2022 academic study found 128 cases of foreigners faced exit bans between 1995 and 2019, including 29 Americans and 44 Canadians. Around a third of the bans were business related. James Zimmerman, a lawyer based in Beijing and former chairman of the American Chamber of Commerce in China, said Chinese authorities routinely use exit bans to prevent witnesses or suspects viewed as flight risks from exiting mainland China. "Most of the time, there is a legitimate legal basis for the exit ban, while there are indeed instances of misuse of the process by the government authorities, including for political reasons," Zimmerman said While there are procedures in place to have the ban lifted, a lack of transparency and absence of a workable bail system make it a time-consuming and challenging process, he added. Other incidents of bans in recent years have embroiled executives from Japanese investment bank Nomura Holdings (8604.T), opens new tab, U.S. risk advisory firm Kroll and Swiss wealth manager UBS (UBSG.S), opens new tab. Yet some professional advisors say travel to China has become safer than several years ago, said Benjamin Qiu, Co-Chair, Asian Affairs Committee at the New York City Bar Association. Unless your company has been specifically targeted by the state or a state-owned entity, risks are low, said Qui, adding that ethnic Chinese travellers do face heightened risk. Other executives are hoping the Wells Fargo incident does not presage a wider crackdown. "We do so much business in China and travel there so much, we can't afford not to. I would hope this is just a one-off," said a capital markets banker at a Western bank in Hong Kong, declining to be named as the person was not authorised to talk to the media.
Bloomberg
15-06-2025
- Business
- Bloomberg
China's Biotech Moment Ignites a 60% Stock Rally That Beats AI
China's biotechnology stocks have shaken off a four-year slump to be among the hottest performers in Asia this year and funds are tipping further gains. The Hang Seng Biotech Index has surged more than 60% since the start of January amid investor enthusiasm over a pair of billion-dollar deals involving foreign firms licensing Chinese drugs. Share gains at two highly anticipated listings of local producers have further burnished the sector's appeal.
Arabian Business
04-06-2025
- Business
- Arabian Business
Qatar posts $138m budget deficit in Q1 2025
Qatar recorded a budget deficit of QR500m ($138m) in the first quarter of 2025, according to data released by the Ministry of Finance (MoF). The deficit, which covers the months of January through March, was financed through debt instruments, the ministry confirmed via its official statement on social media platform X. The total revenues for Q1 2025 stood at QR49.4bn ($13.56bn), marking a 7.5 per cent decrease compared to the same period in 2024. Breaking down the revenue: Oil and gas revenues amounted to QR 42.5bn ($11.68bn) Non-oil revenues contributed QR 6.9bn ($1.9bn) On the expenditure side, Qatar spent QR49.9bn ($13.7bn) in Q1 2025, reflecting a 2.8 per cent year-on-year decrease. Spending was distributed across key categories: Salaries and wages: QR16.9bn ($4.64bn) Current expenditures: QR18.5bn ($5.08bn) Major capital expenditures: QR13.1bn ($3.59bn) Minor capital expenditures: QR 1.2bn ($330m) Qatar economy The MoF also reported that government procurement contracts during Q1 2025 totalled QR6.4bn ($1.76bn). Notably, contracts awarded to foreign firms reached QR1.5bn ($412m) — a 50 per cent surge compared to Q1 2024, underscoring Qatar's expanding engagement with international partners. Among sectors leading economic activity based on the Business Activity Index were: Municipality and environment Health Energy
Reuters
04-06-2025
- Business
- Reuters
Wall St watchdog to consider rules on US-traded foreign firms
June 4 (Reuters) - The U.S. Securities and Exchange Commission on Wednesday is due to take the first steps toward producing new rules on which foreign firms qualify for less stringent investor disclosure requirements, according to a public notice. The public meeting, set for 1 p.m. in Washington, comes a year after a Republican Commissioner Mark Uyeda called for a public comment process on changing the definition of publicly traded foreign firms. He singled out Chinese companies as enjoying easier reporting requirements even when they are solely traded on U.S. stock markets. The commission is due to consider whether to issue a call for public comment on possible new rules, the substance of which the SEC has not yet made public. Spokespeople for the agency and for Uyeda declined to comment. In an address at Harvard last year, Uyeda said companies primarily owned and administered abroad qualified as "foreign private issuers" -- meaning they were only required to file annual reports and occasional market updates, even if they were solely traded on a U.S. stock exchange. A 2024 congressional study indicated nearly 90% of the 265 Chinese firms publicly traded in the U.S. were not listed on stock exchanges elsewhere, according to Uyeda. On the other hand, U.S. firms trading on the same stock exchanges fall under the full scope of American securities laws, including quarterly financial reporting, proxy solicitation rules and prompt disclosure of "material events" such as mergers and the departures of board members, he said at the time. "This issue deserves attention, and the SEC should consider evaluating whether foreign private issuers should be limited to companies whose securities are also listed on a foreign stock exchange," Uyeda said.
