China imposed exit bans on two U.S. citizens: a senior executive of U.S.-based Wells Fargo Bank and a federal employee of the U.S. Commerce Department. These incidents underscore the significant risks of conducting business or traveling in China.
Very little personal information is public regarding the federal employee affected by the exit ban, likely due to his affiliation with the U.S. government and concerns for his safety. According to the South China Morning Post, he is a naturalized U.S. citizen who originally came from China and is a veteran of the U.S. Army. He traveled to China in April to visit family but has been unable to leave since then. The reason for the exit ban is unclear, but The Washington Post suggests it may be related to his alleged failure to disclose his U.S. government employment on his visa application to Chinese authorities.
In contrast, more information exists about the Wells Fargo executive affected by the exit ban. Her name is Chenyue Mao, a naturalized U.S. citizen originally from China, and a managing director in Wells Fargo’s Atlanta division. Mao is reportedly an expert in factoring, a process in which exporters in one country “sell unpaid invoices to third parties, who then collect payments later from importers in another country.” Mao has previously collaborated with Chinese companies in trade financing and factoring.
Shortly after announcing her appointment as the Chairwoman of Factors Chain International (FCI) on LinkedIn, Mao traveled to China for business. Chinese authorities, however, prohibit her from leaving China for the U.S without disclosing specific reasons. This lack of transparency apparently prompted Wells Fargo’s management to suspend all business travel to China.
Under party leader Xi Jinping, the Chinese Communist Party (CCP) has intensified its use of exit bans against both Chinese citizens and foreign passport holders for a multitude of reasons — be it financial, legal, or political. Individuals can face an exit ban due to business disputes, unpaid taxes, or being labeled a “national security concern.” The term “national security concern” is intentionally vague, allowing the CCP to effectively restrict anyone, including American citizens, from leaving China.
A 2022 study by two researchers of California Polytechnic State University revealed that between 1995 and 2019, 128 foreigners faced exit bans, including 29 Americans and 44 Canadians, with more than 30 percent of the cases linked to business matters.
Risk Increases to Visit China
Business travel to China has become even more risky in recent years. For instance, in September 2023, Chinese authorities imposed an exit ban on Charles Wang Zhonghe, chairman of China investment banking at Nomura, after his business trip in China. After 10 months of uncertainty, Wang was finally allowed to leave in July 2024. Meanwhile, Michael Chan of Kroll has been under an exit ban since September 2023.
These cases raise serious concerns about employee safety and operational stability for foreign companies in China. China’s exit ban process is arbitrary and undisclosed. Targeted individuals often receive no prior notice. This lack of transparency means travelers often remain completely unaware of their status until they attempt to leave China, resulting in shock and confusion.
Compounding the issue, the exit ban is frequently the precursor of illegal detention. Those barred from leaving may find themselves imprisoned on baseless charges. Their legal rights, including the fundamental right to legal representation, are routinely ignored and egregiously violated. The Chinese government obstructs access to consulates, making it even harder for foreigners to seek help. Adding to the distress, the Chinese Communist Party rarely informs families or employers about the reasons for these bans or how long they will last, leaving many in a state of confusion and worry.
At times, the CCP employs “exit bans” as a tool of its insidious “hostage diplomacy,” meaning the party uses foreign passport holders as pawns to extract concessions from their home governments. A striking illustration of this is the case of American citizen Mark Swidan, who was barred from leaving China in 2012 at the last moment and subsequently imprisoned under false charges. After languishing for more than 12 years in a Chinese prison for crimes he did not commit, Swidan was finally able to return to America last year as part of a prisoner swap between China and the U.S. In this exchange, China released three American citizens, including Swidan, in return for three Chinese citizens detained by the U.S.
According to the Dui Hua Foundation, a nonprofit that focuses on political and religious prisoners in China, more than 200 Americans are still wrongfully detained or facing coercive measures, such as exit bans, in the communist country. This situation represents a grave violation of human rights and is a matter of great concern. Thus, the U.S. State Department’s travel advisory to warn Americans: “Exercise increased caution when traveling to Mainland China due to arbitrary enforcement of local laws, including in relation to exit bans.”
Some foreign companies are understandably alarmed by China’s exit ban, prompting them to cancel or postpone trips and implement safeguards such as making executives travel as a group into the country. In contrast, other companies, including Nvidia, continue to deepen their business relationships with China, accepting the inherent risks — like potential exit bans and employee detentions — as part of operating within a challenging environment. Unfortunately, both strategies fail to incentivize the CCP to alter its oppressive behavior.
We are dealing with an authoritarian regime that behaves like a gangster organization, blatantly disregarding human rights, international standards, and the rule of law. To effectively deter the CCP from imposing exit bans and unlawfully detaining American citizens, the U.S. must increase the consequences of such actions. For instance, the CCP may reconsider its aggressive tactics if our government were to impose a 100 percent tariff on Chinese imports every time it restricts our citizens’ freedom of movement without valid justification. Furthermore, American companies should seriously contemplate suspending their business operations in China if their employees face exit bans or wrongful detentions.
Without a powerful response from our government and businesses, Americans may ultimately have no choice but to avoid traveling to China entirely to escape potential exit bans. If you choose to go, be aware that China is akin to the haunting imagery in the iconic song “Hotel California” — “You can check out anytime you like, but you can never leave” — if the CCP targets you with an exit ban.