[BEIJING] China said the case of a Wells Fargo banker blocked from leaving the country was related to a criminal matter, escalating an episode that already underscored global firms’ fears about operating in the nation.
“Mao Chenyue is involved in a criminal case currently being handled by Chinese law-enforcement authorities and is subject to exit restrictions in accordance with the law,” Foreign Ministry spokesperson Guo Jiakun said at a regular press briefing in Beijing on Monday (Jul 21). He added that it was “an individual judicial case” but did not provide details.
“Pursuant to China’s laws, with the case still under investigation, Mao cannot leave the country for the time being and has the obligation to cooperate with the investigation pursuant to Chinese laws,” Guo said. “We will protect her lawful rights and interests through an investigation.”
While the nature of the case is unclear, the incident risks further undermining the confidence of foreign institutions on doing business in the world’s second-largest economy. Global banks have over the past few years scaled back their presence in China as economic growth has slowed and political tension, most notably with the US over trade, increased.
“What we encourage China to do is to shed light on these cases so companies and individuals can assess their own risk for being subject to an exit ban,” said Sean Stein, president of US-China Business Council. Some of the group’s members had reached out to seek more information on the case, he said. “There will be more concern over time if China doesn’t figure out how to shine a light on this.”
Mao is fairly high profile in her industry. She was recently elected chair of FCI, a global body for factoring and financing for domestic and international trade. She spearheads Wells Fargo’s international factoring business and advises multinational clients on cross-border working-capital strategies, according to FCI.
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Well Fargo did not immediately respond to an e-mailed request for comment sent outside of regular business hours in the US.
Separately, reports have appeared over the weekend that China has stopped an American citizen who works for the US Commerce Department from leaving the country for several months, an episode that coincides with Beijing and Washington trying to arrange a leaders’ summit so they can address their differences on trade.
The Chinese-American individual who works for the Patent and Trademark Office had travelled to meet relatives, the Washington Post reported, citing four sources familiar with the matter, who asked not to be identified discussing the sensitive issue.
Guo, the Foreign Ministry spokesman, said he did not have any information to share about the Commerce Department employee.
“China is a country upholding the rule of law,” Guo said. “We handle relevant cases in strict accordance with the law.”
Wells Fargo recently suspended travel to China after Mao, one of its top trade financing bankers, was prohibited from leaving the country. The Atlanta-based managing director born in Shanghai was banned from departing China after entering in recent weeks, Bloomberg News reported last week, citing a source with knowledge of the situation.
The bank has offices in Beijing and Shanghai to manage relationships with local clients in its corporate and investment banking business, as well as local branches in the two cities, according to its website.
China’s use of exit bans has been a point of contention between Beijing and Washington. The US State Department has repeatedly advised citizens to reconsider travel to China based on what it called the “arbitrary enforcement of local laws, including in relation to exit bans”. BLOOMBERG
