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China's Exit Bans on Foreign Executives: What Businesses Need to Know

Updated: Apr 20

In an unprecedented move, Chinese authorities have recently barred two high-profile executives from leaving the mainland. The impacted individuals include a senior banker from Nomura Holdings who oversees the firm's investment banking operations in China, and a senior executive from the American risk advisory firm, Kroll. These bans come amidst increasing concerns from Western businesses regarding China's slowing growth and the introduction of new laws that potentially complicate the business environment.


Charles Wang Zhonghe, the China investment banking chairman at Nomura, is now unable to travel outside of mainland China. His exact nationality remains unclear, but his LinkedIn profile indicates a base in Hong Kong. When contacted for a comment on this situation, both a Tokyo-based spokesperson for Nomura and Wang remained silent.

This ban is believed to be linked to an ongoing investigation into Bao Fan, a prominent tech dealmaker, and his former colleague Cong Lin. The specific reasons for this correlation remain undisclosed.


On the other hand, Michael Chan from Kroll, who specializes in corporate restructuring, has also been restrained from exiting China. The cause for this ban is tied to an investigation from a few years ago, which does not directly target Chan or Kroll. Despite being a Hong Kong passport holder, Chan has communicated to his employer that he cannot leave mainland China. Currently, he continues to work in the region.


The recent actions taken by the Chinese authorities underscore the unpredictable landscape of conducting business in China. It emphasizes the need for companies to be prepared and have contingency plans in place.


For companies navigating the intricacies of the Chinese market, these events are a poignant reminder of the complexities involved. Whether it's the changing economic environment, regulatory framework, or political dynamics, doing business in China demands adaptability, foresight, and effective risk management strategies.


The recent exit bans emphasize the unpredictability inherent in the Chinese business arena. Businesses must remain vigilant, anticipate potential challenges, and adapt their strategies accordingly. In light of such evolving scenarios, it's crucial for firms to be proactive in risk assessment and robust in their strategic planning.


If you're seeking assistance in navigating these challenges, we offer a China travel risk assessment service tailored to meet the unique needs of businesses operating in or with China. Reach out to us for more detailed insights and assistance.

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