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China Bans Government Elites from Holding Overseas Real Estate Assets

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Chinese President Xi Jinping (Getty)

That’s what Xi said.

The Chinese Communist Party has banned key members and their families from holding real estate assets abroad and hopes to help isolate the government from potential sanctions by other countries.

The Wall Street Journal reports notices sent by the party’s Central Orgburo. “The spouse and children of ministerial level officials are prohibited from directly or indirectly holding shares of foreign real estate or foreign registered entities.”

According to the report, these employees and their families are also prohibited from opening accounts with foreign financial institutions unless they are doing business immediately in the area, such as school or work.

It’s unclear if the rules issued in March last year will apply retroactively, but some officials have already sold shares owned by foreign companies to comply.

The new rule was born as the United States and other Western nations used sanctions against Russian officials, businessmen and oligarchs to punish Moscow leaders in an attack on neighboring Ukraine. .. It is believed that the ban was implemented to minimize the political risk if such sanctions were directed to China.

“Top executives, especially senior executives, need to pay attention to family discipline and ethics,” Xi told the party’s highest disciplinary action in January, saying his official was “with a spouse.” You should manage your child properly and set an example to be a loyal person. ” Do things in a clean way. “

Authorities are now being told to sign a pledge declaring compliance with the new rules.

Xi is fighting the emergence of corruption and misconduct by Chinese civil servants, including through a 2014 campaign to pursue 3,200 so-called “naked officials” who have moved their children and spouses abroad and stored their assets abroad. I have insisted for a long time.

According to the report, China does not prohibit citizens of the country from investing in or establishing their own offshore companies.

[ Wall Street Journal] — — Vince Dimisseri

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