China will block promotions for senior officials whose spouses or children hold significant assets abroad. The Chinese communist government announced this through an internal party circular that was seen by journalist and published on WSJ on May 19.
The Communist Party of China announced that officials who hold significant assets abroad will be sanctioned. According to a report from WSJ, the move is to discourage the country’s leaders and their spouses from investing in foreign companies and having significant investments overseas. The new instruction also bars officials from using proxies such as spouses and children to make investments.
Preempting Russia-Like Sanctions
The internal directives is aimed at insulating the country’s leaders from sanctions. It appears that the government of China has taken a cue from the sanctions imposed on Russia by US and her NATO allies. The far-reaching sanctions targeted overseas assets of top government officials in Russia.
The internal memo released by the Communist Party’s Central Organization Department is part of President Xi Jinping’s effort at strengthening China’s position in the face increasing tension with the United States.
No Foreign Stocks And Real Estate Investments
According to the new policy, all senior government officials who still keep overseas investments will be excluded from promotions. According to insiders who are aware of the March memo, the directive will sanction party leaders whose families still keep foreign accounts and investments.
It states that senior party officials and their family members are no longer permitted to hold foreign investments. It states that foreign accounts have been barred as well, unless such officials can prove that there are genuine reasons why they should operate them.
According to the release, the directive targets ministerial-level officials and leaders of the communist party of China. This group are not permitted to own real estate abroad. The restriction also affects foreign assets such as stocks issued by companies outside the Peoples’ Republic of China.
China, Russia, India and Iran are already working at ways to reduce dependence on the USD and the hegemony it grants Western powers.