China has been preventing people from leaving the country, including foreign executives, which is contradictory to the country's message of being open for business after strict COVID-19 measures. According to a report by Safeguard Defenders, many Chinese and foreigners are being affected by the exit bans, while a Reuters analysis indicates a rise in court cases involving these bans.

Business lobbies for foreign companies are expressing concern about the trend. The Chinese legal landscape for exit bans has grown since Xi Jinping's leadership began in 2012, says the Safeguard Defenders report, and the bans have increasingly been used without proper legal justification.

According to a report by rights group Safeguard Defenders, and a Reuters analysis, China is increasingly imposing exit bans on people, including foreign executives, which runs counter to China's message that it is open for business after three years of tight COVID-19 restrictions. The report states that since President Xi Jinping took power in 2012, China has expanded the legal landscape for exit bans and is increasingly using them, sometimes outside legal justification. Between 2018 and July 2022, five new or amended laws were introduced that provide for the use of exit bans, bringing the total number of laws allowing them to 15.

The group estimates that "tens of thousands" of Chinese are banned from exit at any one time. The report also found 128 cases of foreigners being exit-banned between 1995 and 2019, including 29 Americans and 44 Canadians. This trend is causing concern among foreign business lobbies, who worry about the uncertainty and vague wording of China's counter-espionage legislation, which allows exit bans to be imposed on anyone who causes "harm to the national security or significant damage to national interests."

According to a Reuters analysis of China's Supreme Court database, there has been an eight-fold increase in cases referring to exit bans between 2016 and 2022. While most of the cases in the database mentioning exit bans are related to civil disputes, the recent changes to China's counter-espionage law allow exit bans to be imposed on anyone under investigation, regardless of nationality. The analysis did not reveal any cases involving foreigners or politically sensitive issues related to subversion or national security.
In contrast to China's increasing use of exit bans, the United States and European Union generally do not impose travel bans for civil claims but only for criminal suspects, according to the news.

Despite repeated requests for comments on exit bans, including inquiries on the number of individuals subject to them, China's Ministry of Public Security did not respond to Reuters. One individual who has been prevented from leaving China is a Singaporean executive at the U.S. due-diligence firm Mintz Group, according to three anonymous sources. However, the company, the executive, and China's Public Security Bureau did not respond to requests for comment.

Amid rising tensions between the United States and China, the risk of exit bans has increased, according to Lester Ross, a long-time lawyer in China who has dealt with cases involving such bans. His statement came in response to recent cases involving foreign firms, including the US-based due-diligence company Mintz Group, whose Singaporean executive was reportedly prevented from leaving China earlier this year after the authorities raided the company's office and detained local staff. Last week, US management consultancy Bain & Co confirmed that police in Shanghai had visited its office and questioned employees.

Lester Ross, a veteran lawyer in China who has handled exit ban cases, said that he has observed an increase in companies and entities expressing concerns about exit bans, and seeking advice on how to prepare for and reduce the risks associated with them. Ross, who also heads the American Chamber of Commerce's China policy committee, added that the salience of this risk has risen due to rising tensions between the United States and China.

The counter-espionage law, with its vague wording allowing exit bans on those who pose a risk to "national interests", has raised concerns among foreign businesses operating in China. The European Union Chamber of Commerce in China is calling for clarity, with its head, Jorg Wuttke, stating that the uncertainty around the legislation is significant and makes it difficult to conduct proper due diligence.

According to a report by Safeguard Defenders, individuals who are barred from leaving China include not only regular Chinese citizens involved in financial disputes but also human rights defenders, activists, lawyers, and ethnic minorities like Uyghurs in the Xinjiang region.

The European Union Chamber of Commerce in China has also expressed concern over the mixed signals the exit bans send when China is trying to attract foreign investment. The lack of clarity in the counter-espionage legislation and the increased scrutiny have led to an escalation in companies' concerns and seeking advice on how to reduce risks.

According to a report by Safeguard Defenders, China has increasingly been imposing exit bans, preventing both Chinese and foreign nationals from leaving the country, including foreign executives. The group estimates that tens of thousands of Chinese are banned from exit at any one time, while a Reuters analysis of records on exit bans from China's Supreme Court database shows an eight-fold increase in cases mentioning bans between 2016 and 2022.

Chinese citizens embroiled in financial disputes, as well as rights defenders, activists, and lawyers, and ethnic minorities such as Uyghurs in China's northwestern Xinjiang region, are among those who have been barred from leaving. The use of exit bans has intensified under President Xi, reflecting tighter security measures, according to activists. Foreign businesses are expressing concern about the trend, given the heightened scrutiny and vague wording of China's counter-espionage legislation.

Chinese rights activist Xiang Li, who was denied exit from China for two years before escaping in 2017 and receiving asylum in the United States, stated that "China doesn't have the rule of law." She claimed that the law in China serves the purposes of the Chinese Communist Party and is very effective. She made these comments in a phone interview with Reuters from California.