Beijing denounces report on Wen family's wealth

Beijing reacted furiously yesterday to an overseas media report that Premier Wen Jiabao's family had accumulated massive wealth during his time in office.

"Some reports smear China and have ulterior motives," Foreign Ministry spokesman Hong Lei said in response to a question about The New York Times report, which said Wen's family controlled at least US$2.7 billion worth of assets.

Hong declined to comment on the accuracy of the report.

The websites of the English and Chinese editions of the paper were blocked on the mainland yesterday. Observers said the action underscored Beijing's sensitivity to revelations about top leaders, especially as they were likely to be used in an intensifying power struggle inside the Communist Party in the run-up to the party's national congress early next month and the announcement of China's next leadership team.

Hong Kong-based political commentator Johnny Lau Yui-siu said Hong's remarks indicated Beijing was worried some people in the inner political circle were teaming up with foreign forces to influence the next leadership line-up - even though the newspaper has conducted a thorough investigation into Wen.

"The impact caused by the exposure is wide-ranging because other top Chinese leaders may sooner or later face the same situation," he said.