RISKS REMAIN FOR FOREIGN WORKERS
A 2023 EU Chamber of Commerce survey found that 9 per cent of respondents had difficulty attracting foreign talent to China due to concerns over personal safety, legal risks, and arbitrary enforcement. Four per cent reported that employees had been unable to travel from China to headquarters due to exit bans.
While there is no official data on exit bans, nonprofit Safeguard Defenders estimates that “tens of thousands” of people, mostly Chinese nationals, are subject to such restrictions at any one time. A 2022 academic study found 128 cases involving foreigners between 1995 and 2019, including 29 Americans and 44 Canadians. About one-third were business-related.
James Zimmerman, a lawyer in Beijing and former chairman of the American Chamber of Commerce in China, said exit bans are commonly used to prevent witnesses or suspects from leaving. While often legal, they are sometimes misused for political purposes, he said.
“There are procedures to have the bans lifted, but the lack of transparency and the absence of a workable bail system make it a slow and difficult process,” Zimmerman added.
Executives from Nomura Holdings, UBS, and Kroll have previously been caught up in such cases.
LOW RISK UNLESS TARGETED
Some professionals say China travel is safer than in previous years.
“Unless your company has been specifically targeted by the state or a state-owned enterprise, risks are low,” said Benjamin Qiu, co-chair of the Asian Affairs Committee at the New York City Bar Association. However, Qiu noted that ethnic Chinese travellers may face greater scrutiny.
A capital markets banker at a Western firm in Hong Kong said they hoped the Wells Fargo case would not signal a broader clampdown.
“We do so much business in China and travel there so much, we can’t afford not to,” the banker said. “I would hope this is just a one-off.”
