Beijing stops US Commerce employee from leaving China, reports say

BEIJING - China has stopped an American citizen who works for the US Commerce Department from leaving the nation for several months, according to media reports. The episode coincides with Beijing and Washington trying to arrange a leaders’ summit to address their differences on trade.

The Chinese-American employee from the US Patent and Trademark Office had travelled to meet relatives, The Washington Post reported, citing four people familiar with the matter, who asked not to be identified discussing the sensitive issue.

The US sent a very high-level message to Beijing to let the man depart, the newspaper added, citing one person. It said it did not know the name of the man facing a so-called exit ban, which was put in place over an apparent failure to disclose on a visa application that he worked for the US government. 

Officials from Beijing and Washington – including those in the Commerce Department – are negotiating a trade deal after US President Donald Trump hit goods from China with heavy tariffs that he later paused.

Mr Trump also wants a meeting with Chinese leader Xi Jinping to sort through their problems, which also touch on technology curbs, rare earths and the status of Taiwan.

To get the sit-down and a trade pact, Mr Trump has recently softened his harsh campaign rhetoric that focused on the US’ massive trade deficit with China and resulting job losses.

Earlier in July, US Secretary of State Marco Rubio said after meeting his Chinese counterpart, Mr Wang Yi, that there was a “strong desire on both sides” for a Xi-Trump meeting.

The outlook for such a meeting could be complicated if the episode involving the Commerce Department employee escalates.

The man, a veteran of the US Army, was detained when he arrived in the south-western city of Chengdu in April, the South China Morning Post reported on July 20, citing a person familiar with the situation.

He was being prevented from leaving China because his case was “related to actions Beijing deemed harmful to national security”, the newspaper reported, though the specifics could not be confirmed.

Since the man arrived in Chengdu, he had also travelled to the Chinese capital with a US official, the newspaper added.

The Patent and Trademark Office, where the man works, handles US patents and registers trademarks. It says on its website that its “mission is to drive US innovation and global competitiveness”.

A spokesperson for the US Embassy in Beijing said its “highest priority is the safety and security of US citizens overseas”.

It added that “we track these cases closely and have raised our concern with the Chinese authorities about the impact these arbitrary exit bans have on our bilateral relations and urged them to immediately allow impacted US citizens to return home”.

China’s use of exit bans has been a point of contention between Beijing and Washington in recent years.

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”.

Wells Fargo recently suspended travel to the world’s second-biggest economy after one of its top trade financing bankers was blocked from leaving.

Ms Mao Chenyue, an Atlanta-based managing director who was born in Shanghai, was banned from departing after entering China in recent weeks, according to a person with knowledge of the situation.

China’s Foreign Ministry said on July 21 that the Wells Fargo banker was involved in a criminal case and was obliged to cooperate with the investigation.

The Chinese law enforcement authorities have restricted Ms Mao’s exit in accordance with the law, said Mr Guo Jiakun, a spokesman for the ministry.

The US bank had suspended all travel to China after Ms Mao’s exit ban, a person familiar with the matter told Reuters last week.

The case was being investigated, and Ms Mao was obliged to cooperate with the investigation, Mr Guo said, without elaborating on the case or how the banker was involved.

“Everyone in China, whether they are Chinese or foreigners, must abide by Chinese laws,” Mr Guo said, adding that China will protect their legitimate rights and interests in investigations.

In a statement to AFP, Wells Fargo said it was “closely tracking this situation and working through the appropriate channels, so our employee can return to the US as soon as possible”.

The case underscores multinational companies’ fears about the risks of operating in China, especially regarding staff safety and restrictions on movement.

Among notable cases in recent years, the Wall Street Journal in 2023 reported a senior executive at US risk advisory firm Kroll was prevented from leaving China.

In 2019, Bloomberg reported that a UBS Group wealth manager was detained for about three months before returning home.

An academic analysis published in 2022, based on data from six governments, found 128 cases of foreign citizens facing Chinese exit bans, with at least a third of the cases driven by business disputes.

Chinese law prohibits people suspected of crimes from leaving the country. Chinese citizens judged to have endangered national security can also face exit bans under the country’s recently updated espionage law. BLOOMBERG