China launches global tax probe, targets overseas Chinese assets

China is reportedly initiating a sweeping global tax investigation, extending its reach back 25 years to reclaim billions in unpaid taxes from its citizens and overseas assets. The campaign, described as a "global great tax pursuit," aims to address significant local government financial shortfalls exacerbated by a real estate crisis.

According to online commentator Ba Jiong, citing the Financial Times, the investigation targets a wide array of overseas assets. This includes foreign properties, stocks, precious metals, cryptocurrencies, offshore accounts, and trusts. Additionally, individuals who earned income from trade policies in Hong Kong may face a 20% personal income tax. This broad scope puts numerous officials, corporate executives, and overseas Chinese citizens at risk of asset liquidation.

The government's aggressive tax collection is framed as a desperate measure amid financial collapse, likened to "cutting the big white" (referring to nucleic acid testers) and now targeting overseas wealth. This is occurring alongside new "915 exit restrictions," which complicate passport applications and restrict travel for students and overseas Chinese. Reports suggest risks of detention, account closures, and forced nationality revocation.

Ba Jiong strongly warns overseas Chinese to recognize the situation, stating that assets and identities earned in democratic countries could be lost overnight due to China's stringent tax enforcement and asset seizure measures. The campaign underscores a growing trend of capital flight from China as financial pressures mount.