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    Family of Chinese leader amasses a fortune

    Wen came from poverty, but kin now millionaires

    Wen Jiabao is known for his common touch, but his relatives may have benefited from government deals.
    Li Xueren/Xinhua News Agency/Via Associated Press
    Wen Jiabao is known for his common touch, but his relatives may have benefited from government deals.

    BEIJING — The mother of China’s prime minister was a schoolteacher in northern China. His father was ordered to tend pigs in one of Mao’s political campaigns. And during childhood, ‘‘my family was extremely poor,’’ the prime minister, Wen Jiabao, said in a speech last year.

    But now 90, the prime minister’s mother, Yang Zhiyun, not only left poverty behind — she became outright rich, at least on paper, according to corporate and regulatory records.

    The details of how Yang, a widow, accumulated such wealth are not known. But it happened after her son was elevated to China’s ruling elite, first in 1998 as vice prime minister and then five years later as prime minister.


    Many relatives of Wen Jiabao, including his son, daughter, younger brother, and brother-in-law, have become extraordinarily wealthy during his leadership, an investigation by The New York Times shows. A review of corporate and regulatory records indicates that the prime minister’s relatives, some of whom have a knack for aggressive deal-making, including his wife, have controlled assets worth at least $2.7 billion.

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    In many cases, the names of the relatives have been hidden behind layers of partnerships and investment vehicles involving friends, work colleagues, and business partners. Unlike most new businesses in China, the family’s ventures sometimes received financial backing from state-owned companies, including China Mobile, one of the country’s biggest phone operators, the documents show. At other times, the ventures won support from some of Asia’s richest tycoons. The Times found that Wen’s relatives accumulated shares in banks, jewelers, tourist resorts, telecommunications companies and infrastructure projects, sometimes by using offshore entities.

    As prime minister in an economy that remains heavily state-driven, Wen, who is best known for his simple ways and common touch, more importantly has broad authority over the major industries where his relatives have made their fortunes. Because the Chinese government rarely makes its deliberations public, it is not known what role — if any — Wen, who is 70, has played in most policy or regulatory decisions. But in some cases, his relatives have sought to profit from opportunities made possible by those decisions.

    The business dealings of Wen’s relatives have sometimes been hidden in ways that suggest the relatives are eager to avoid public scrutiny, the records filed with Chinese regulatory authorities show.

    ‘‘In the senior leadership, there’s no family that doesn’t have these problems,’’ said a former government colleague of Wen Jiabao who has known him for more than 20 years and who spoke on the condition of anonymity. ‘‘His enemies are intentionally trying to smear him by letting this leak out.’’