In recent days, a senior executive of Wells Fargo, a major U.S. bank, has been prevented from leaving China by the Chinese Communist Party, marking another typical case following multiple similar incidents. This development has not only raised concerns within the U.S. government but has also heightened worries among multinational corporations about the business environment in China. Experts point out that against the backdrop of continuing tensions in U.S.-China relations, the legal and personal safety risks faced by foreign corporate executives in China are sharply escalating.
According to reports from various media outlets including The Wall Street Journal, Chenyue Mao, the Managing Director and head of trade finance at Wells Fargo, has recently been barred from leaving China during his visit.
Born in Shanghai, Chenyue Mao is a U.S. citizen currently based in Atlanta and also serves as the chairman of the International Factors Group (FCI) headquartered in Amsterdam, wielding significant influence in the global trade finance sector.
Wells Fargo stated that they are assisting their employee in returning to the U.S. through appropriate channels but did not disclose the specific reason for Chenyue Mao’s visit to China. The U.S. State Department has expressed concerns to China regarding this matter and urged China to allow affected American citizens to leave as soon as possible.
The Chinese Ministry of Foreign Affairs responded by stating that they “do not have relevant information” while emphasizing China’s commitment to creating a favorable business environment. However, in recent years, similar incidents have become frequent, posing a significant risk factor for foreign investments in China.
In recent years, foreign corporate executives in China have frequently encountered restrictions, sparking concerns among foreign businesses about the operating environment. In July 2025, a Japanese executive from Astell Life Sciences was sentenced to three and a half years in prison on espionage charges by a Beijing court, leading to protests from the Japanese government. Prior to this, executives from Nomura Securities and Kroll’s Michael Chan had also been restricted from leaving the country.
In 2023, the American investigative firm Meisim Intelligence was raided in China, with several employees detained, including their Singaporean manager who was barred from leaving, resulting in a fine of around $1.5 million for the company. AstraZeneca’s China CEO Wang Lei has been under travel restrictions since December 2024 and has since gone missing.
According to data from the European Chamber of Commerce, 9% of businesses reported security risks for foreign employees traveling to China, with some companies experiencing disruptions in business activities due to travel bans, creating actual operational barriers.
Professor Yao Yuan Ye from St. Thomas University in the U.S. expressed to The Epoch Times that the Chinese government’s restriction of the personal freedom of foreign corporate executives is based on three main considerations: acquiring core business information from American banks or pressuring companies to comply with policies; using this as leverage to force compromises from foreign companies on specific matters; and leveraging the complex vested interests of executives in China as negotiation or struggle tools.
“China frequently detains foreign corporate executives on charges of espionage or economic crimes, but these allegations often lack transparent grounds and serve more diplomatic bargaining needs,” Yao Yuan Ye pointed out. “This has become a common practice of ‘hostage diplomacy’.”
He further analyzed that against the backdrop of escalating U.S.-China trade tensions and technological competition, such actions may aim to create negotiation leverage but will only worsen the business environment, prompting companies to reevaluate their investment risks in China.
Shen Mingshi, a researcher at the Taiwan Institute for National Defense Studies, analyzed from a different perspective that the incident may reflect several underlying issues:
Firstly, in recent years, the Chinese government has intensified efforts to combat money laundering, capital outflows, and other financial crimes, leading to a significant increase in risks for companies and individuals involved. Since executives in the financial industry are often engaged in cross-border transactions, any abnormal flow of funds may easily trigger investigations.
Secondly, under pressure to prevent capital outflows, foreign companies involved in financial transactions are viewed as potential risk subjects by China. To prevent capital flight, China rigorously controls the movements of foreign financial personnel, possibly to monitor fund flows or pressure related companies to comply with regulations.
Thirdly, Shen Mingshi believes that political factors should not be underestimated. Continuous factional struggles within the Chinese Communist Party have made the financial industry a vital link in the chain of funds, easily becoming a tool for factional struggles. Setting up cases against foreign financial executives may serve as a means to purge internal enemies while also exerting pressure externally to demonstrate strength to the U.S.
Shen Mingshi told The Epoch Times that while China had initially promised to relax regulations to attract foreign investment, its recent practices have become stricter, indicating the waning influence of internal reform and opening up forces, with political security taking precedence over economic development. Such incidents will further undermine foreign confidence and collaboration with the international financial system.
Following the Wells Fargo incident, the bank has completely suspended business travels to China. Previously, employees from UBS, Kroll, and other institutions had also been restricted from leaving, prompting foreign financial institutions to generally enhance compliance with China’s regulations and personal security alerts.
Chairman Jens Eskelund of the China-EU Chamber of Commerce stated that such incidents will exacerbate foreign enterprises’ anxiety about operating in China, reducing China’s attractiveness to high-end foreign talents. Surveys show that some companies have restricted individual trips to China by their employees or shifted relevant functions to other countries.
The United States and several other governments have repeatedly urged China to improve legal safeguards to ensure the legitimate rights of foreign nationals. However, these incidents continue to occur, leading to a reassessment of risks by foreign investors in China.
The Wells Fargo incident once again highlights that multinational corporations operating in China not only face market uncertainties but also need to address multiple risks such as legal and political. Several experts believe that as China intensifies monitoring of foreign investment and foreign corporate executives, compliance costs and legal risks of operating in China will continue to rise. Western companies may therefore adjust their global strategies, relocating more business functions to markets with more transparent and predictable legal environments.