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China’s Growing Use of Exit Bans Raises Alarm Among Foreign Businesses

The CCP's massive monitoring system include both AI and human. The photo shows the two Chinese police officers patrolling the interior platform at Shenzhen Metro Station in China. (Photo:© Moose Lai |Dreamstime.com)

By Middle Land Staff

July 18, 2025
3:13 pm
Los Angeles, CA

China’s use of exit bans to restrict foreign workers and businesspeople from leaving the country is drawing increasing scrutiny from multinational companies, diplomats, and human rights advocates. While the practice has existed for years, recent high-profile incidents—including the case of a Wells Fargo executive barred from exiting the country—underscore the growing risks for foreign nationals operating in the world’s second-largest economy. Recent Cases Stir Concern The issue was thrust into the spotlight again in July 2025, when Chenyue Mao, a U.S. citizen and managing director at Wells Fargo, was reportedly blocked from leaving China after entering the country on business. While the exact reason for the restriction remains unclear, the incident prompted Wells Fargo to suspend all employee travel to China. “We are closely tracking this situation and

Recent Cases Stir Concern

The issue was thrust into the spotlight again in July 2025, when Chenyue Mao, a U.S. citizen and managing director at Wells Fargo, was reportedly blocked from leaving China after entering the country on business. While the exact reason for the restriction remains unclear, the incident prompted Wells Fargo to suspend all employee travel to China.

“We are closely tracking this situation and working through the appropriate channels to ensure our employee can return to the United States as soon as possible,” the bank said in a statement.

Mao’s case follows several similar incidents in recent years:

In 2023, a senior executive at Japanese bank Nomura was barred from leaving the mainland amid regulatory inquiries.
During the diplomatic standoff between Canada and China in 2018, multiple Canadian citizens faced exit bans following the arrest of Huawei CFO Meng Wanzhou.
Foreign executives at multinational firms have been restricted from leaving over commercial disputes, including alleged breach of contract or outstanding debts.

Business Climate Chills

These developments have intensified concerns within the global business community. Multinational firms with operations in China are now re-evaluating travel policies and legal exposure. Some have canceled or postponed travel, while others have instructed employees to enter the country in pairs or groups, and only with robust documentation in hand.

“Companies are becoming much more cautious,” said a regional compliance officer for a Fortune 500 company. “The risk is no longer theoretical.”

Human rights organizations have also voiced concern, warning that the exit bans are being used as a form of coercion collective punishment, often without due process. In a 2023 report, Safeguard Defenders, a rights group focused on China, documented a sharp rise in exit bans, affecting hundreds of foreign nationals, dual citizens, and Chinese citizens alike.

Diplomatic Tensions Add Complexity

The use of exit bans comes amid a backdrop of escalating U.S.-China tensions over trade, technology, national security, and Taiwan. Experts say that the lack of legal transparency in China—and the potential for politically motivated enforcement—adds another layer of unpredictability for foreign nationals.

Foreign governments have limited options to intervene, especially in cases involving dual citizens, as China does not recognize dual nationality. This has left embassies struggling to assist citizens caught in legal limbo.

In response to rising concern, some business advocacy groups have urged the Chinese government to clarify and reform the use of exit bans, calling for greater legal transparency, better communication, and consistent rules.