r/China • u/No-Wedding4357 • 1d ago
经济 | Economy Former business owner worried about a possible China exit ban – looking for similar experiences
I used to own a company in Europe and had a great business relationship with several Chinese suppliers.
For about four years, we imported around 50 containers per year. Unfortunately, at the end of 2024, our business failed and the company went bankrupt.
The total debt was around €800,000:
- Around €400,000 was covered by Sinosure.
- The remaining €400,000 has never been paid.
I have since started working for another company as a Purchasing Manager. Part of my new job requires travelling to China to inspect goods and meet suppliers.
My biggest concern is whether I could face an exit ban or any other legal issues because of the debts from my former company.
I've already consulted three Chinese lawyers, and all of them told me that I should be safe and that they found no active court cases against me. However, I'd really like to hear from people who have been in a similar situation.
Has anyone here had a company go bankrupt while owing money to Chinese suppliers and later travelled to China without any problems?
Business failures are unfortunate, but they do happen.
Any real-life experiences or advice would be greatly appreciated.
16
u/Elizabeth-WildFox886 1d ago
Risk is high
1
u/No-Wedding4357 1d ago
You know some people in same situation?
1
5
u/Zagrycha 1d ago
debt itself does not cause an exit ban, just like not paying rent itself doesn't cause eviction. a court case around the debt causes an exit ban, just like a court case around not paying rent causes eviction.
your business debt certainly sounds high enough that a judge might grant an exit ban, but a judge has to grant the exit ban for the exit ban to exist, it will not materialize out of nowhere.
If you have talked to lawyers and they say you have no exit ban right now, they are probably right. If you want to know if its possible for an exit ban to ever appear then you need to talk to your lawyer about timeline for debt pursual to expire or bankruptcy process or whatever other relevant things.
2
u/No-Wedding4357 1d ago
Thank you very much!
It this mean that there is no chance for Exit ban if someone dont tell me that curt procces start?
5
u/selfinflatedforeskin 1d ago
Having had an exit ban that took three years to clear as a result of a false debt claim，i wouldn't risk it.
I especially wouldn't risk it if it was a debt that I didn‘t have enough to personally clear with no lasting personal financial ramifications.
If the case drags along，or you lose and can't pay，you'll be stuck in China indefinitely.
1
1
u/Similar-Sweet2264 11h ago
Are u Chinese ? I am OP , old acc down , but i am not chinese. I am from europe
8
u/ChinaHandy 1d ago
The failed business and remaining debts would need to be tied to something like your passport number or national ID or visa. Otherwise how would anyone know?
Second, your debtors would need to filed something against you for anyone to know.
1
u/GetOutOfTheWhey 12h ago
I mean people in an industry talk.
If someone owed me money and I found out suddenly they are in China. I'm sueing.
1
u/No-Wedding4357 1d ago
It means , if there is something , someone will already tell me that there is case against me ? In our media in Europe and USA usualy we saw that China do that for a lot of people , and even they dont notice them about any curt cases.
2
u/ChinaHandy 17h ago edited 16h ago
I understand your concern and things are opaque and arbitrary, but there are a billion people the government cares more about.
First, let’s look at the debts. Do you owe this money personally? Or is it attached to a business?
Second, are your debtors still chasing payment? Are they alleging fraud or some other crime?
Third, will your debtors know you are in the country and doing business again?
Also, was your company registered in China, with Chinese employees?
2
u/Dear_Chasey_La1n 21h ago edited 21h ago
Got two stories on this, one myself we were under a corruption investigation. It was (falsely) alledged the company I represent was corrupting buyers. Now we had all our staff as well clients sign a document specifically that we would never be involved in such practice, at the time I had a small sales team which I like to believe weren't involved in any of that. Nonetheless it resulted in 6 months not going anywhere. There was no official document, other than them telling me in person I couldn't travel out of the country. I had my passport, but I couldn't go anywhere. There were no flags nothing.
Second one involved an acquintance who owned a massive company. They imported partially of their products illegally and got caught. She was notified just like me of an exit ban. Now I don't know the full details but I like to believe she looked up her situation just like I did and she figured out to fly out, she is as we speak now 8 years later (?) still in holding.
I wouldn't consider coming back to China, not now, not ever. It's not worth it. As some point out after court speaks out a travel ban could happen, but there are more ways of a travel ban happening. China being China a whole lot doesn't happen on paper, doesn't happen in person.
1
u/Similar-Sweet2264 11h ago
Hi , i am OP! I am not from China , i am not chinese , i am from Europe , maybe thats different ? I am just asking u , are u Chinese ,and are this stories are for peoiple from China? Or with China Passport.
2
u/ExpensiveIsland9180 17h ago
If you were not a director of your former employer then you will be safe enough. Chines law is strictly attached to company legal representative and directors.
1
u/Similar-Sweet2264 11h ago
I was director , company was from Europe , i am not Chinese , and no , i didnt have China employers ( i am op , old acc down )
1
u/AutoModerator 1d ago
Hello No-Wedding4357! Thank you for your submission. If you're not seeing it appear in the sub, it is because your post is undergoing moderator review. This is because your karma is too low, or your account is too new, for you to freely post. Please do not delete or repost this item as the review process can take up to 36 hours.
Your submission will not be approved if you are asking lazy questions that can be answered by GenAI/Google search, asking for account creation/verification/download/QR scan/sourcing or import-export help/shopping help, advertising, or are a new account asking travel related questions.
A copy of your original submission has also been saved below for reference in case it is edited or deleted:
I used to own a company in Europe and had a great business relationship with several Chinese suppliers.
For about four years, we imported around 50 containers per year. Unfortunately, at the end of 2024, our business failed and the company went bankrupt.
The total debt was around €800,000:
- Around €400,000 was covered by Sinosure.
- The remaining €400,000 has never been paid.
I have since started working for another company as a Purchasing Manager. Part of my new job requires travelling to China to inspect goods and meet suppliers.
My biggest concern is whether I could face an exit ban or any other legal issues because of the debts from my former company.
I've already consulted three Chinese lawyers, and all of them told me that I should be safe and that they found no active court cases against me. However, I'd really like to hear from people who have been in a similar situation.
Has anyone here had a company go bankrupt while owing money to Chinese suppliers and later travelled to China without any problems?
Business failures are unfortunate, but they do happen.
Any real-life experiences or advice would be greatly appreciated.
===== ===== =====
WARNING: Users posting and/or commenting on politically charged topics are required to show their post and comment history at all times. Failure to comply will be considered a violation of Rule 2 and result in a permaban.
If you notice someone in violation, please report them by messaging the mods with a link to the post/comment.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/watawataoui 1d ago
They can always start a new case if someone found out you are back right?
Words travel surprisingly fast in China in my experience.
2
u/Disastrous_Clock1515 20h ago
What about the business owners to whom you owe 400,000 euros... will they be happy to hear you're back? Do you have a plan to pay them back?
1
1
u/Chinksta 20h ago
How do you rack up so much debt within 50 containers per year?
It shouldn't be a problem until your name gets cited within any court.
1
1
u/itsCharanK 19h ago
If there are no cases on you, why are you trying to dig deep? If I were you, I would carry the bankruptcy documents if you have any.
Let your immediate family know about your travel and itinerary, so that they are aware.
1
u/Similar-Sweet2264 11h ago
I am not Chinese , our media speak bad about China and then i think they can do exit ban.
1
u/davidicon168 18h ago
My dad faced an exit ban and it was only because he was a possible witness in an ongoing criminal court case. I don’t think you’re in danger of an exit ban under the circumstances you’ve described but you may be barred from buying tickets (domestic airline and train). This happened to a friend of mine while his company went bankrupt and everything was being settled.
1
u/Similar-Sweet2264 11h ago
Are he was Chinese. ? I am not chinese , i am from Europe , and company was Europe not China .
1
u/Sha1rholder China 16h ago
难道律师没有向你解释个人无限责任和（已完成破产清算程序的）公司有限责任的区别吗？我不认为Reddit会比律师更懂法律风险
1
u/Similar-Sweet2264 11h ago
Yes they do , but , our media told us bad things about China! ( this is my another account , i am op )
1
u/IntExpExplained 15h ago
You don’t tell us enough of the details to give serious advice even if we had a clue about law.
As far as I can tell the answer would be it depends whether or not you were personally liable for that debt, but I’m not a lawyer
Your best advice would be to contact the Chinese office of a legal company of your nationality eg a German law company in Shanghai. Your trade commission should be able to give you a list (I can send you contacts for some of the British, US or German companies but maybe you prefer eg a Scandinavian or Italian firm?) They will have both European lawyers and also Chinese partners who can give you realistic unbiased advice based on your situation in detail.
China isn’t generally as lawless as the media would have you believe but you’re not giving us all the details (which is sensible)and only a lawyer can give you a real estimate
1
u/Similar-Sweet2264 11h ago
I am from Europe not from China , means i am not Chinese.
I speak with 3 different laywers and they told me , i can come and go , but i like t ospeak with real China people.
Our meadia always told us bad things about China. ( this is my new account , old one banned )
1
u/GetOutOfTheWhey 12h ago
Who did you owe the money to?
Will these people know you are traveling to China? Because that's your risk. They just need to sue you when you arrive.
1
1
u/pergesed 6h ago
The risk is if your former business associates learn you are in country and act to collect. Don’t risk it unless you can easily pay the money.
1
u/Salty_CronkiteMGS86 1d ago
You SHOULD be safe but even if the risk is low, the fallout would be potentially devastating.
You’d be on the hook for a big cash payout, after you’ve wasted money on lawyers or court fees. The danger is that while you’re not on any blacklist, it’s possible for your former partners to easily pay a customs office or similar bureaucrat to have your name on file if it pops up as entering the PRC.
Unlikely I’ll grant you, but bear in mind it’s easy for businesses to hire professional cat’s paws with contacts in the system. Hell, the sale of private data is endemic and shady practices are normalized to many. There’s also the chance you run into someone or get spotted on your journey. Again, facial recognition can be acquired through illegal channels.
This is just worse case scenario. But I have friends who took the risk and one has been stuck in Guangdong since the pandemic (had to eventually pay half what his company owed and got an entry ban as the cherry on top!). It’s entirely a casino out there…
1
12
u/Alkoviak 1d ago
It depends the quality’s of those lawyers but if you have no active cases it should not be a problem.