The New York Times has reported that the family of Chinese Premier Wen Jiabao controls assets worth $2.7 billion. In response, access to The New York Times in China is now blocked and every mention of the story in the media and on microblogs is being censured. The story is a reminder of the problems generated by China's incredible growth and the fragility of the Beijing government's legitimacy. These are always sensitive subjects, but their importance is magnified during a government transition and the scandal surrounding former strongman and candidate for the supreme leadership, Mr. Bo Xilai. Indeed, there is a good chance that the revelations are tied to the Bo affair.
As premier, Mr. Wen is responsible for the administration of the Chinese economy. He has cultivated the image of a simple man, who is close to the people and is often first on the scene of a disaster, earning him the sobriquet of "Grandpa Wen." At a time when income disparities in China approached some of the highest levels in the world, he offered reassurance to ordinary people that their concerns were considered at the highest levels of government.
That image was undermined last week when The New York Times reported that members of Mr. Wen's family controlled economic assets — companies or shares therein — worth billions of dollars, a claim that the Wen family disputes. Chinese law requires strict disclosure of the wealth of senior party officials and that of their immediate family. More distant relatives are less encumbered: They are free to exploit their contacts and many do. Mr. Wen's mother, for example, is reckoned to have made $120 million by investing in companies prior to going public that fall under the prime minister's jurisdiction. The Times also reported that a company controlled by Mr. Wen's brother made $30 million in government contracts and subsidies to handle wastewater treatment and medical waste disposal.