Leaked Records Reveal Offshore Holdings of China’s Elite

A report from the International Consortium of Investigative Journalists exposes secret offshore accounts among family members of high-ranking Chinese politicians and business leaders. The report is based on 2.5 million leaked files from two firms that assist with high-wealth trusts and banking. “As the country has moved from an insular communist system to a socialist/capitalist hybrid, China has become a leading market for offshore havens that peddle secrecy, tax shelters and streamlined international deal making,” notes the ICIJ report. “Chinese officials aren’t required to disclose their assets publicly and until now citizens have remained largely in the dark about the parallel economy that can allow the powerful and well-connected to avoid taxes and keep their dealings secret.” It’s estimated that at least $1 trillion in assets have left the country since 2000. Such investments may be legal only because the public had no idea about the secret transfers, aided by overseas banks and accounting firms that view “China-related demand” as a driver the offshore financial market’s growth. – YaleGlobal