Beijing is increasing the frequency of imposing “exit bans” on foreign citizens, deepening concerns among the overseas business community about traveling to China. A victim who has been restricted from leaving the country stated that the widespread fear caused by the Chinese Communist Party’s “abuse of power” will damage foreign investment.
In just July alone, media reported two cases of American citizens being restricted from leaving by the CCP. One is an executive from Wells Fargo, the other is an employee of the U.S. Department of Commerce.
While the Chinese authorities do not maintain comprehensive records of exit bans, data from the Supreme People’s Court of China (which records bans issued by some judicial departments) shows that the number of people restricted from leaving the country has been increasing yearly since 2018.
John Kamm, a member of the Dui Hua Foundation, an American NGO focusing on human rights in China, attributes the growing number of exit bans to the escalating tensions between China and the United States.
Kamm told the Financial Times that the misuse of exit bans by the CCP is becoming an increasingly serious issue, with cases spread widely and for various reasons. He stated that it is known that 30 to 40 American citizens are currently unable to leave China, a number that is certainly underestimated.
Many victims find out about their exit ban only when they reach the customs at the airport and are about to leave China. The CCP typically does not provide any explanation for exit bans, leaving victims to navigate through its opaque and hostile system without guidance or assistance.
One victim who was prohibited from leaving described that when he was passing through customs at the airport, the monitoring light suddenly turned red and a strange alarm went off. Later, a customs officer informed him that he was banned from exiting and gave him a phone number to contact for more information, but the victim said that the number was never answered by anyone.
Another investor who was stopped at the airport had a similar experience. He said his heart was pounding, desperately trying to recall if he had done anything wrong.
“Afterward, fear consumed me, and every day felt like a year,” the victim said.
Two other victims, who chose to remain anonymous, mentioned that removing the ban can take several months and is related to cases they may be involved in.
According to data from the Supreme People’s Court of China, nearly all of the 53,000 exit bans issued in 2024 were related to civil cases.
The Chinese officials claimed that the Wells Fargo executive was involved in criminal cases but did not provide detailed explanations. Masada Mao, an American citizen residing in Atlanta, had been working for over 10 years, helping the bank establish its international factoring business. This service allows domestic exporters to sell overseas accounts receivable at a slight discount for cash.
Senior executives from import and export companies stated that Mao’s team was well-known in China, and Wells Fargo has been helping Chinese companies go global through factoring and trade financing. Wells Fargo has suspended all work-related trips to China for its employees.
The reason for the exit ban on the employee of the U.S. Department of Commerce remains unclear, and authorities have refused to disclose any information. Reports from foreign media indicated that the Chinese-American was restricted from leaving after visiting China. Since mid-April, he has been unable to leave China and has been continuously interrogated by the CCP security department. The U.S. Embassy stated that they are closely monitoring the case and communicating with Chinese officials in hopes of resolving the issue promptly.
The Financial Times mentioned that experts and affected individuals have claimed that the CCP authorities are implementing exit bans more widely. In some cases, financially troubled local governments detain and penalize business executives, a practice referred to by the public as “long-distance fishing.”
“Long-distance fishing” refers to “profit-driven law enforcement,” where the CCP police and government are likened to fishermen at sea, using “fines and confiscations” as significant sources of revenue, leading to many miscarriages of justice.
A report by the non-profit organization Safeguard Defenders, which focuses on human rights in China, stated that from 2018 to 2022, the number of laws in China authorizing the implementation of exit bans has increased from 10 to 14. In 2018, the amended “Supervision Law” allowed the implementation of exit bans on anyone under investigation or related to an investigation, even if they are not suspects.
Victims previously restricted from leaving expressed that the core issue of this practice is “abuse of power,” which results in a widespread sense of fear that, in turn, undermines the attraction of foreign investment.
“Unless the issue of fear is addressed, entrepreneurs will not dare to act,” the victim said.