Sources: Former Vice Premier Liu He Under Strict Restrictions as Son Investigated

File photo: On March 5, 2021, the day before the opening of China's National People's Congress (NPC), police patrol Tiananmen Square with dogs on a day of heavy air pollution in Beijing. (Photo by Kevin Frayer/Getty Images.)

[People News] On April 6, the UK-based Financial Times cited multiple informed sources revealing that Liu Tianran, son of former Politburo member and State Council Vice Premier Liu He, is under investigation for financial corruption.

Before stepping down, Liu He was widely regarded as a close confidant of Xi Jinping, a key economic adviser, and even dubbed the CCP’s “economic czar.” He was a member of both the 18th and 19th Central Committees of the Chinese Communist Party. In March 2023, Liu officially retired from his position as Vice Premier. Just two months prior, in January 2023, he represented China at the World Economic Forum in Davos and delivered a speech. Even after retirement, Liu continued to participate in internal CCP economic meetings, maintaining significant influence. In July 2023, he met with visiting U.S. Treasury Secretary Janet Yellen in Beijing and again, on April 8, 2024, met her as a former Vice Premier.

Now, it has emerged that his son has been under investigation for six months. A former colleague of Liu Tianran even claimed that he had “likely lost his freedom,” implying that he may have already been detained. The Financial Times, citing seven sources familiar with the matter, confirmed that Liu Tianran is no longer free. “He has been detained,” said one source, noting that the investigation is linked to corruption. Authorities first looked into Liu Tianran’s connections with Ant Group’s attempted $37 billion IPO.

Liu Tianran previously worked as a journalist at The Economic Observer and in 2016 founded an investment firm called Skycus Capital, which invested in companies like Tencent and JD.com. Although CCP rules prohibit the children of senior officials from engaging in businesses related to their parents' regulatory domains, Liu Tianran, after Liu He was promoted to the Politburo in 2017 and later became Vice Premier overseeing financial affairs, only nominally stepped down from his chairman role and transferred shares, continuing to operate secretly behind the scenes. Within five years, Skycus Capital’s assets reportedly exceeded 10 billion RMB. One of its executives, Tang Meng, formerly worked at China’s Ministry of State Security.

Insiders told the Financial Times that the investigation into Liu Tianran also uncovered links to Ant Group and Alibaba. They added that Xi Jinping has received reports regarding the allegations.

Commercial records reviewed by the Financial Times show that Skycus Capital raised funds from numerous state-owned entities, including the China Development Bank, China Mobile, and Industrial Bank. In addition to receiving investments from tech giants like Tencent and JD.com, the firm also invested in business spinoffs from these companies.

If Liu Tianran has indeed been under investigation for six months, this suggests that Liu He could not protect his son and may himself be under control. Over the past year, state media coverage of Liu He’s meetings with foreign dignitaries has significantly declined. Those aware of the investigation believe that Liu He’s low profile is tied to his son’s case. Dennis Wilder, former CIA China analyst, remarked that Liu He might be in trouble and appears to have fallen out with Xi Jinping. One informed source claimed Liu He is now under strict restrictions.

Media outlets have reached out to Liu He, Liu Tianran, and Skycus Capital for comments on the allegations but have received no response.

China’s financial system has long been dominated by the "princeling" elite. In recent years, the CCP has intensified its crackdown on senior financial officials, with many bank chairmen, general managers, and capital-linked executives falling. Political commentator Li Linyi stated that while foreign media have reported Xi Jinping losing power and his confidants being purged amid internal strife, the current revelations about Liu He’s family troubles reflect escalating CCP infighting.

Christopher Johnson, former CIA chief China analyst and current head of the China Strategies Group, commented: “If the Liu Tianran case is true, it reflects a new phase of anti-corruption targeting illegal gains by relatives of top leaders.” He added that such investigations often reside in a gray area—some individuals remain in limbo between freedom and formal arrest, sometimes even receiving pardons. If Liu Tianran is arrested, it could spell danger for Liu He, perhaps indicating that the severity or scale of the case exceeds the threshold for leniency.

Some analysts believe this case, if confirmed, could be a blow dealt by anti-Xi factions targeting Xi’s allies—Xi might not be able to shield Liu He, and Liu He can’t protect his son. However, others caution that the Financial Times previously reported in November 2023, citing U.S. officials, that Defense Minister Dong Jun was under investigation. The Chinese Defense Ministry promptly denied the rumor the next day, condemning the accusers as malicious. Days later, Dong Jun appeared in public to dispel the speculation. Nevertheless, other sources noted that Dong Jun, recommended by Miao Hua, may have undergone a routine investigation due to his association with Miao. Dong’s recent disappearance last month has also sparked speculation that he is likely in trouble.