China’s ruling communist party (CCP) has issued a new regulation in the name of anti-corruption banning high-ranking officials and their families from big business activities. Experts pointed out that it’s related to the CCP’s factional infighting and economic problems.
According to the Chinese regime’s official media Xinhua, on June 19, the Central Committee of the CCP issued a document imposing a ban on the family members of senior officials who are above the bureau level from business. Officials spouses, children, and their children’s spouses are affected.
The officials must also report the business activities of their families every year. If officials or family members decide not to withdraw from their business activities, the officials must step down from their positions. Those who fail to do so will be “dealt with seriously in accordance with regulations and laws.”
The business activities include investing in enterprises or private equity funds, holding senior positions in private or foreign companies, and engaging in paid advisory or legal services.
Cementing Obedience and Funds
Experts believe there are various reasons behind the CCP’s latest restrictions on the business activities of its officials.
Chen Weijian, editor-in-chief of political magazine “Beijing Spring,” told The Epoch Times on June 20 that Chinese leader Xi Jinping’s “zero-COVID” policy has met with resistance among local officials for its continued implementation. Meanwhile, local governments are following Premier Li Keqiang’s instructions to resume work and production to save China’s economy, leaving Xi feeling that his authority is being challenged.
“Especially when the CCP’s 20th Party Congress is approaching, if he wants to be re-elected, he must deter those who oppose him. Now, senior officials and their families are required to report their property and business. This is indeed a very big blow to them. It’s like that Xi Jinping controls them all. Anyone who is disobedient will be taken down by this anti-corruption regulation because now, which official and their relatives are not involved in corruption?” he said.
Wu Zuolai, a U.S.-based China scholar agreed with Chen’s analysis. He told The Epoch Times on June 20 that the investigation into the business activities of high-ranking officials and their family members would continue until the CCP’s 20th Party Congress, as a deterrent to Xi’s political opponents.
Wu said that another reason may also be that the CCP’s central government is facing a huge shortage in funds, and the regulation will force the family members of high-level officials to provide money to the regime.
“Because they did use their position and influence to amass huge wealth, especially in some sectors monopolized by the regime,” Wu said. “It’s easy for them to make billions or tens of billions, and it’s known within the CCP. There are thousands of cadres above the provincial governor level, if each of them cough up 100 million yuan ($15 million), then the regime will get 50 billion yuan ($7.46 billion). So they may be internally raising funds this way.”
Nin Haizhong and Luo Ya contributed to the report.