BEIJING (Reuters) -U.S. bank Wells Fargo has suspended all travel to China after one of its employees was barred from leaving the country, a source said, extending a trend of foreign executives caught up in probes by authorities that has chilled business sentiment.
Below are some other recent examples:
– A Beijing court this week sentenced a Japanese employee of Astellas Pharma to 3-1/2 years in prison. The man had been detained since March 2023 on suspicion of spying and had been indicted about a year ago.
– In March, Chinese authorities released employees of U.S. corporate due diligence firm Mintz Group detained in Beijing two years ago. Five of the firm’s local staff were detained in a raid that turned out to be the beginning of a sweeping crackdown on consultancy and due diligence firms, including Bain & Company’s office in Shanghai. A Singaporean executive at Mintz was also prevented from leaving China, sources told Reuters. China fined Mintz about $1.5 million in July 2024 for doing “unapproved statistical work”.
– Anglo-Swedish pharmaceutical firm AstraZeneca saw its China president Leon Wang detained and placed under investigation in 2024, with little information about what the probe was about.
Wang, who grew up in China, was a high-profile executive often quoted in the Chinese business press. AstraZeneca’s CEO said in February that the company was not permitted to speak with Wang, who has been placed under extended leave since December. Chinese media had reported that AstraZeneca was under probe since 2021, suspected of fabricating genetic testing results related to the firm’s lung cancer drug Tagrisso and of insurance fraud.
– A senior Nomura Holdings banker overseeing the Japanese firm’s investment banking operations in China was ordered not to leave the mainland, sources told Reuters in late 2023. The exit ban was lifted the following year allowing Charles Wang Zhonghe, China investment banking chairman at Nomura, to return to Hong Kong, where he was previously based, according to the Financial Times.
– Michael Chan, a senior executive at U.S. risk advisory firm Kroll, was barred from leaving the Chinese mainland, the Wall Street Journal reported in September 2023. The Hong Kong passport holder was assisting in an investigation dating back a few years, the newspaper reported, citing people familiar with the matter. Neither Kroll nor Chan was the target of the investigation, according to the newspaper.
– A Singapore-based UBS wealth manager was prevented from leaving China in 2018. The executive was asked to remain in the country to meet with local authorities, Reuters reported at that time. The uncertainty surrounding the exit ban on the wealth manager had led the Swiss bank and several of its rivals to require their private banking staff to carefully consider trips to China.
(Reporting by Liz Lee in Beijing and John Geddie in Tokyo; Editing by Muralikumar Anantharaman)
