After the Chinese Communist Party tightened control over outbound personnel, some individuals who are restricted have attempted to entrust their relatives to handle their deposits and real estate overseas. However, a financial industry insider revealed to The Epoch Times that even direct and collateral blood relatives are now being stopped at the ports. The authorities’ control over personnel movement is further affecting their ability to manage overseas assets.
The insider mentioned that those affected include public officials, managerial staff in enterprises and institutions, as well as key figures in the financial, technology, and other industries. In the past, if these individuals were unable to leave the country, they could still authorize their relatives to handle their deposits and real estate overseas. Now, even the ability of relatives to leave the country is uncertain.
He cited recent incidents, saying, “Recently, a friend’s brother was stopped by border officers in Shanghai from leaving the country without any explanation provided. In Beijing airport, a middle-ranking leader working at Bank of Communications was also not allowed to depart.”
Mr. Xu, who works at China International Capital Corporation (CICC), disclosed to reporters that after the authorities restricted certain public officials and enterprise management personnel from leaving the country, some people arranged for their relatives to go overseas to handle their finances, while others set up companies abroad to transfer domestic funds through trade. Subsequently, the family members of these individuals were also subjected to outbound restrictions, affecting some collateral relatives as well.
The new regulations on entry and exit management announced by the State Council of the Chinese Communist Party took effect on September 15. It stipulates that those who violate regulations on export control, technology import and export management, and may potentially harm national industrial or technological security, can be listed as persons not allowed to leave the country. The deciding authorities are generally required to inform the individuals of the reasons, but in cases involving national security, criminal investigations, etc., they may not disclose the reasons. The new regulations do not explicitly specify that family members of the aforementioned individuals are not allowed to leave the country. The cases where relatives were stopped at the ports as mentioned by the insider are individual cases that require further verification.
Mr. Gao, a retired civil servant in Shanghai, told reporters that many public officials in China have relatives living overseas. Some of these individuals, although not holding high positions, are in key positions and have the opportunity to benefit from them. “Over the past 30 years, these individuals have acquired a large amount of illegal income, with deposits in the United States, the United Kingdom, Australia, real estate purchases, and some have obtained Irish citizenship. However, with the sudden tightening of outbound policies, they are unable to leave. Therefore, they are trying to entrust trustworthy individuals to handle their affairs abroad.”
Mr. Gao stated that for individuals with overseas assets, being restricted from leaving the country means more than just missing out on a travel opportunity. Matters such as account management, property transactions, etc., may require the individual to be present; if they cannot leave, they rely on their relatives to handle them. If their relatives are also stopped at the ports, it could become difficult to manage their assets abroad.
Mr. Li, who resides in Europe, mentioned that some staff members in enterprises, especially those working in local banks, had transferred funds to overseas banks. Some accounts have not received funds for many years, with no transaction records, leading to them being frozen by the bank. The bank would then require the account holder to be present to handle the unfreezing procedures.
Mr. Li explained that once the account holder is restricted from leaving the country, even if the money is still overseas, it becomes challenging to personally visit the bank and complete the procedures. “Even if you ask someone else to handle it, there’s no guarantee of success, and it depends on what documents the bank requires. If you’re unable to leave, the money in your account may become inaccessible. Recently, several friends in China have discussed this issue with me, and I told them, either find a way to leave or forget about the money, you can’t have it both ways.”
The Chinese Communist Party previously required senior officials to report on their spouses, children working or living abroad, holding overseas assets, etc., and implemented centralized management of entry and exit permits for certain individuals. Mr. Li mentioned that middle and lower-level management officials, who received less attention in the past, may now face more stringent exit checks; if even the relatives handling affairs are restricted, the authorities’ control over individuals and families expands further. This change is related to the pressure on local finances within the Chinese Communist Party, as the authorities may be seeking new “financial resources” through these means.