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China accuses Wen Jiabao's critics of smear campaign

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Foreign ministry hits out at foreign press amid claims that Chinese premier's relatives control assets worth at least $2.7bn

China's foreign ministry has accused critics of trying to destabilise the country and warned that they are "doomed to failure" after reports that premier Wen Jiabao's family has amassed vast wealth.

The New York Times reported on Friday that Wen's relatives had controlled assets worth at least $2.7bn (£1.7bn), citing company and regulatory filings.

Lawyers representing the family released a statementext to Hong Kong media at the weekend disputing the article, in a highly unusual move. The New York Times says it stands by its report.

Asked about the article, the foreign ministry spokesman, Hong Lei, told reporters: "It is confirmed that Premier Wen's family has employed a lawyer to release the statement. We will continue to clarify the report."

He said the Communist party's leadership had enhanced China's international standing, adding: "There are always some voices in the world who do not want to see China develop and become strong. They try every means to smear China and the Chinese leaders and create instability in China. Their scheme is doomed to failure.

"The Communist Party of China and the government and people will eliminate any disruptions and firmly follow the path of socialism with Chinese characteristics."

The foreign ministry had previously claimed the article "blackens China's name and has ulterior motives".

The Communist party had hoped for a quiet year in the runup to next month's party congress, marking the handover of power to a new generation of leaders. But it has faced a string of embarrassments, with the downfall of former Chongqing party secretary Bo Xilai – now under investigation by prosecutors – and the jailing of his wife Gu Kailai for the murder of British businessman Neil Heywood.

Bloomberg reported on the wealth amassed by Bo's extended family and by relatives of Xi Jinping, the heir apparent to the presidency.

Such reports have underlined how closely economic and political power coexist in a country where the top 70 members of the largely rubber-stamp legislature were worth an average 8bn yuan (£800m) last yearext.

The website of the People's Daily, the official Communist party newspaper, also attacked the New York Times in an article on Monday that failed to mention the report on Wen's relatives but claimed that "in recent years, there has been an explosion in plagiarism and fabrication by its journalists".

The Financial Times pointed out that much of that commentary had been lifted from other articlesext.

Authorities have also blocked the New York Times's Chinese language website as well as its main website and have banned microblog searches for its name and a variety of terms relating to the article. Reported by guardian.co.uk 1 hour ago.

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