"China Bans Overseas Asset Ownership for Senior Officials' Spouses and Children... Promotion Blocked"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The Chinese Communist Party plans to block the promotion of party officials whose spouses or children hold significant assets overseas, the Wall Street Journal (WSJ) reported on the 19th (local time).

WSJ cited sources familiar with the matter, stating that such guidelines were announced within the Communist Party last March. It interpreted that this measure could allow Chinese President Xi Jinping to further strengthen his influence over officials ahead of the 20th National Congress of the Communist Party scheduled for the end of this year.

According to the related guidelines, senior officials and their immediate family members are prohibited from opening accounts at overseas financial institutions unless there are legitimate reasons such as study or work. It is unclear whether this regulation is applied retroactively, but sources said that families of senior officials sold overseas corporate stocks they held to comply with the rule.

Furthermore, WSJ explained that this directive aims to minimize geopolitical risks amid concerns that China could face sanctions similar to those imposed by Western countries on Russia for its war in Ukraine.

In January, President Xi emphasized to the country's disciplinary agencies that "leading officials, especially senior officials, must pay attention to family discipline and ethics," and that they "should properly manage their spouses and children and set an example by working sincerely and cleanly."

Earlier, since the beginning of Xi's tenure, the Chinese Communist Party has been conducting anti-corruption investigations, uncovering over 3,200 officials who sent their families abroad and hid financial assets overseas in 2014, demoting one-third of them.