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Business Times
3 hours ago
- Business
- Business Times
China says Wells Fargo banker ‘involved' in criminal case
[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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 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
CNN
6 hours ago
- Business
- CNN
China bans Wells Fargo banker from leaving the country
Source: CNN An Atlanta-based banker working for Wells Fargo has been prevented from leaving China, the latest incident that threatens to amplify concerns among Western executives about the potential consequences of visiting the world's second-biggest economy. Chinese authorities said Monday the exit ban placed on Wells Fargo executive Chenyue Mao is part of a criminal investigation. 'Ms. Mao Chenyue is involved in a criminal case being handled by Chinese authorities, who have lawfully imposed exit restrictions on her,' Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, said Monday following a regular press conference. It's not clear the target of the criminal case, nor how Mao is believed to be linked to it. 'According to Chinese law, the case is under investigation, and Ms. Mao is temporarily unable to leave the country and is obligated to cooperate with the investigation,' the spokesperson for China's Ministry of Foreign Affairs said. 'During the investigation, the authorities will ensure that her legal rights are protected.' Mao has been employed by Wells Fargo since 2012, according to her LinkedIn profile. Born in Shanghai and based in Atlanta, Mao leads Wells Fargo's international factoring business and advises multinational companies on cross-border capital strategies, according to FCI, a global network of companies formerly known as the Factors Chain International. Mao was recently elected to be the chairwoman of FCI. 'We are closely tracking this situation and working through the appropriate channels so our employee can return to the United States as soon as possible,' Wells Fargo told CNN in a statement. Wells Fargo has since suspended all travel to China, according to The Wall Street Journal, which first reported news of Mao being blocked from leaving the country. The bank declined to comment further on the incident. An automated response on Monday from Mao's email indicates she is overseas. 'Traveling international on business with time difference, may delay in responses, will respond as soon as I'm able to,' the automated response said. News of the exit ban placed on the Wells Fargo banker comes as a Chinese American man working for the Commerce Department has been prevented from leaving the country, according to the Washington Post. The Commerce Department employee, working in the agency's Patent and Trademark Office, was visiting family in China several months ago and failed to disclose on his visa application that he worked for the US government, the Post reported. The Commerce Department referred CNN's inquiries to the US State Department. The State Department did not respond to a request for comment on the Commerce employee or the Wells Fargo banker. The State Department currently has a 'level 2' travel advisory for China, indicating Americans should 'exercise increased caution' when traveling to Mainland China due to 'arbitrary enforcement of local laws, including in relation to exit bans.' The incidents are likely to raise concern in C-suites and among boards of directors about the risks of visiting China. 'This has everyone jittery again, nervous about traveling,' Sam Stein, president of the US-China Business Council, told CNN in a phone interview on Monday. Stein, who previously worked as a US diplomat in China and advised companies on China matters at the law firm Covington and Burling, said Western companies are often in the dark about the reasons behind exit bans imposed by China. 'This could have a chilling effect on executive travel to China — unless China can be more transparent,' Stein said. 'China has a small window. Now is the time to come out and explain the circumstances where someone can be placed on an exit ban. China really needs to step up.' Dale Buckner, CEO of international security firm Global Guardian, is urging US companies to 'carefully vet all employees' for characteristics that pose risks during travel to China. 'Those with government ties, dual nationality, or involvement in sensitive industries like defense or advanced technology should not travel to China, including Hong Kong and Macau,' Buckner said in an email to CNN. 'Companies should only allow travel if necessary and carefully weigh whether the benefit outweighs the risk of an exit ban or detention.' Buckner added that China is 'always seeking ways to gain leverage during negotiations or acquire sensitive' intellectual property from rivals and cautioned that individuals who fail to disclose military or government ties are vulnerable to exit bans. Jiakun, the Chinese Ministry of Finance spokesperson, stressed that Chinese citizens and foreigners 'must abide by' Chinese law while inside the country. 'This is an individual judicial case, and China will continue to welcome people from all countries to visit and do business, while upholding their rights in accordance with the law,' the spokesperson said. See Full Web Article
Kuwait Times
7 hours ago
- Business
- Kuwait Times
Wells Fargo banker under ban involved in criminal case: China
MIAMI: A Wells Fargo ATM is seen in Miami, Florida. - AFP BEIJING: China's foreign ministry said on Monday that Chenyue Mao, the Wells Fargo banker who has been blocked from leaving the country, was involved in a criminal case and was obliged to cooperate with the investigation. Chinese law enforcement authorities have restricted Mao's exit in accordance with the law, Guo Jiakun, a spokesperson for the ministry, told a regular press briefing. Wells Fargo declined to comment. On Friday, the firm said it was 'working through the appropriate channels' to secure Mao's return to the United States. The US bank suspended all travel to China after Mao's exit ban, a person familiar with the matter told Reuters last week, saying she was a US citizen. It is not known exactly when the ban was imposed. The case was being investigated and Mao was obliged to cooperate with the investigation, Guo said, without elaborating on the case or how and whether the banker was alleged to be involved. 'Everyone in China, whether they are Chinese or foreigners, must abide by Chinese laws,' Guo said, adding that China will protect their legitimate rights and interests in investigations. Beijing has used exit bans on both Chinese and foreign nationals, often in connection with civil disputes, regulatory investigations or criminal investigations. The Wells Fargo exit ban comes as diplomatic and business ties between the US and China remain strained. Experts said it could halt corporate travel to mainland China, especially by Chinese-born people holding foreign passports. Mao was born in Shanghai and based in Atlanta, and is a managing director at Wells Fargo, specializing in the international factoring business. She has been with the bank for 12 years, according to her LinkedIn profile, and two weeks ago was elected chair of FCI, a global organization for factoring and financing for domestic and international trade. Mao leads Wells Fargo's international factoring business, a financing method where companies sell their receivables to third parties, such as banks, in exchange for immediate cash, and advises multinational clients on cross-border working-capital strategies, according to an FCI release. Wells Fargo's China business is much smaller than its Wall Street peer with two branches in Beijing and Shanghai, according to the units' business registration. – Reuters
CNN
10 hours ago
- Business
- CNN
China bans Wells Fargo banker from leaving the country
An Atlanta-based banker working for Wells Fargo has been prevented from leaving China, the latest incident that threatens to amplify concerns among Western executives about the potential consequences of visiting the world's second-biggest economy. Chinese authorities said Monday the exit ban placed on Wells Fargo executive Chenyue Mao is part of a criminal investigation. 'Ms. Mao Chenyue is involved in a criminal case being handled by Chinese authorities, who have lawfully imposed exit restrictions on her,' Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, said Monday following a regular press conference. It's not clear the target of the criminal case, nor how Mao is believed to be linked to it. 'According to Chinese law, the case is under investigation, and Ms. Mao is temporarily unable to leave the country and is obligated to cooperate with the investigation,' the spokesperson for China's Ministry of Foreign Affairs said. 'During the investigation, the authorities will ensure that her legal rights are protected.' Mao has been employed by Wells Fargo since 2012, according to her LinkedIn profile. Born in Shanghai and based in Atlanta, Mao leads Wells Fargo's international factoring business and advises multinational companies on cross-border capital strategies, according to FCI, a global network of companies formerly known as the Factors Chain International. Mao was recently elected to be the chairwoman of FCI. 'We are closely tracking this situation and working through the appropriate channels so our employee can return to the United States as soon as possible,' Wells Fargo told CNN in a statement. Wells Fargo has since suspended all travel to China, according to The Wall Street Journal, which first reported news of Mao being blocked from leaving the country. The bank declined to comment further on the incident. An automated response on Monday from Mao's email indicates she is overseas. 'Traveling international on business with time difference, may delay in responses, will respond as soon as I'm able to,' the automated response said. News of the exit ban placed on the Wells Fargo banker comes as a Chinese American man working for the Commerce Department has been prevented from leaving the country, according to the Washington Post. The Commerce Department employee, working in the agency's Patent and Trademark Office, was visiting family in China several months ago and failed to disclose on his visa application that he worked for the US government, the Post reported. The Commerce Department referred CNN's inquiries to the US State Department. The State Department did not respond to a request for comment on the Commerce employee or the Wells Fargo banker. The State Department currently has a 'level 2' travel advisory for China, indicating Americans should 'exercise increased caution' when traveling to Mainland China due to 'arbitrary enforcement of local laws, including in relation to exit bans.' The incidents are likely to raise concern in C-Suites and among boards of directors about the risks of visiting China. 'This has everyone jittery again, nervous about traveling,' Sam Stein, president of the US-China Business Council, told CNN in a phone interview on Monday. Stein, who previously worked as a US diplomat in China and advised companies on China matters at the law firm Covington and Burling, said Western companies are often in the dark about the reasons behind exit bans imposed by China. 'This could have a chilling effect on executive travel to China – unless China can be more transparent,' Stein said. 'China has a small window. Now is the time to come out and explain the circumstances where someone can be placed on an exit ban. China really needs to step up.' Jiakun, the Chinese Ministry of Finance spokesperson, stressed that both Chinese citizens and foreigners 'must abide by' Chinese law while inside the country. 'This is an individual judicial case, and China will continue to welcome people from all countries to visit and do business, while upholding their rights in accordance with the law,' the spokesperson said.
CNN
10 hours ago
- Business
- CNN
China bans Wells Fargo banker from leaving the country
An Atlanta-based banker working for Wells Fargo has been prevented from leaving China, the latest incident that threatens to amplify concerns among Western executives about the potential consequences of visiting the world's second-biggest economy. Chinese authorities said Monday the exit ban placed on Wells Fargo executive Chenyue Mao is part of a criminal investigation. 'Ms. Mao Chenyue is involved in a criminal case being handled by Chinese authorities, who have lawfully imposed exit restrictions on her,' Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, said Monday following a regular press conference. It's not clear the target of the criminal case, nor how Mao is believed to be linked to it. 'According to Chinese law, the case is under investigation, and Ms. Mao is temporarily unable to leave the country and is obligated to cooperate with the investigation,' the spokesperson for China's Ministry of Foreign Affairs said. 'During the investigation, the authorities will ensure that her legal rights are protected.' Mao has been employed by Wells Fargo since 2012, according to her LinkedIn profile. Born in Shanghai and based in Atlanta, Mao leads Wells Fargo's international factoring business and advises multinational companies on cross-border capital strategies, according to FCI, a global network of companies formerly known as the Factors Chain International. Mao was recently elected to be the chairwoman of FCI. 'We are closely tracking this situation and working through the appropriate channels so our employee can return to the United States as soon as possible,' Wells Fargo told CNN in a statement. Wells Fargo has since suspended all travel to China, according to The Wall Street Journal, which first reported news of Mao being blocked from leaving the country. The bank declined to comment further on the incident. An automated response on Monday from Mao's email indicates she is overseas. 'Traveling international on business with time difference, may delay in responses, will respond as soon as I'm able to,' the automated response said. News of the exit ban placed on the Wells Fargo banker comes as a Chinese American man working for the Commerce Department has been prevented from leaving the country, according to the Washington Post. The Commerce Department employee, working in the agency's Patent and Trademark Office, was visiting family in China several months ago and failed to disclose on his visa application that he worked for the US government, the Post reported. The Commerce Department referred CNN's inquiries to the US State Department. The State Department did not respond to a request for comment on the Commerce employee or the Wells Fargo banker. The State Department currently has a 'level 2' travel advisory for China, indicating Americans should 'exercise increased caution' when traveling to Mainland China due to 'arbitrary enforcement of local laws, including in relation to exit bans.' The incidents are likely to raise concern in C-Suites and among boards of directors about the risks of visiting China. 'This has everyone jittery again, nervous about traveling,' Sam Stein, president of the US-China Business Council, told CNN in a phone interview on Monday. Stein, who previously worked as a US diplomat in China and advised companies on China matters at the law firm Covington and Burling, said Western companies are often in the dark about the reasons behind exit bans imposed by China. 'This could have a chilling effect on executive travel to China – unless China can be more transparent,' Stein said. 'China has a small window. Now is the time to come out and explain the circumstances where someone can be placed on an exit ban. China really needs to step up.' Jiakun, the Chinese Ministry of Finance spokesperson, stressed that both Chinese citizens and foreigners 'must abide by' Chinese law while inside the country. 'This is an individual judicial case, and China will continue to welcome people from all countries to visit and do business, while upholding their rights in accordance with the law,' the spokesperson said.
