A recent travel restriction placed on a Wells Fargo employee has reignited concerns among global companies about the safety of conducting business in China. The move, seen by many as part of a broader pattern of exit bans affecting foreign nationals, raises questions about China’s commitment to fostering a secure and transparent environment for international firms.

According to reports, a senior executive at Wells Fargo, Chenyue Mao—who leads the bank’s international factoring operations—was barred from leaving China after a recent visit. Mao, a U.S. citizen originally from Shanghai, is reportedly the subject of an exit ban, though specific legal reasons remain unclear. An automatic email response from Mao’s account noted she was “travelling international on business.”

Following the incident, Wells Fargo suspended all employee travel to China, a source close to the matter told Reuters.

The development has unsettled foreign business communities already wary of arbitrary enforcement of Chinese laws. Jens Eskelund, president of the European Union Chamber of Commerce in China, remarked, “These cases can discourage international businesses from sending personnel to China, especially when Beijing is actively trying to attract foreign investment.”

In response to the reports, a spokesperson for the U.S. Embassy in Beijing confirmed that they have raised concerns with Chinese authorities, emphasizing that such restrictions harm U.S.-China relations. While Chinese officials declined to comment on this specific case, they reiterated that China remains committed to providing a fair environment for foreign enterprises.

The use of exit bans is not new in China but has garnered renewed attention amid geopolitical tensions and greater scrutiny over the legal framework affecting foreign nationals. The U.S. State Department currently advises American travelers to exercise increased caution in mainland China due to what it describes as “arbitrary enforcement of local laws.”

Data on exit bans is scarce, but watchdog groups like Safeguard Defenders estimate tens of thousands of people are currently restricted from leaving China, most of whom are Chinese citizens. Still, foreign nationals are not exempt. Between 1995 and 2019, at least 128 foreigners—including 29 Americans and 44 Canadians—faced exit bans, with a significant portion linked to business disputes.

James Zimmerman, a Beijing-based attorney and former chairman of the American Chamber of Commerce in China, explained that exit bans are legally sanctioned tools often used to keep witnesses or suspects within China. However, he acknowledged that the lack of legal transparency sometimes leads to abuse of the system for political or commercial leverage.

Recent years have seen similar cases involving employees of other international firms, including Nomura Holdings, Kroll, and UBS, further fueling caution.

Despite these instances, some legal experts and business advisors argue that travel to China has become relatively safer in recent times. Benjamin Qiu, Co-Chair of the Asian Affairs Committee at the New York City Bar Association, noted that unless a company is directly involved in a dispute with a state-linked entity, the risk of being targeted remains low. However, he did warn that travelers of Chinese descent may face heightened scrutiny.

One Western banker based in Hong Kong, speaking anonymously, expressed hope that the Wells Fargo case is an isolated incident rather than a sign of a broader crackdown. “We rely heavily on business in China and travel there frequently. It would be problematic if this became a trend.”

As foreign businesses navigate China’s complex regulatory environment, incidents like this serve as a stark reminder of the potential risks involved—especially when diplomatic and economic tensions run high.