The wife of high-flying Chinese politician Bo Xilai is suspected of murdering British businessman Neil Heywood, state media has reported, the latest twist in the biggest scandal to rock China's political class for decades.
Bo was suspended on Tuesday from powerful positions within the ruling party. His wife, the lawyer Gu Kailai, is being held in custody in connection with Heywood's death, as is Zhang Xiaojun, who worked at the family's home, the official news agency Xinhua reported.
The scandal erupted after Britain announced it had asked for the circumstances of Heywood's death to be reinvestigated. The 41-year-old businessman died last November in the south-western city of Chongqing, where Bo was party secretary until his dismissal last month. Heywood's family have dismissed suggestions of foul play and said they believe he died of a heart attack.
Bo, once tipped to reach the nation's top political body in this autumn's once-in-a-decade power transition, has been suspended from the politburo and central committee because he is suspected of "serious disciplinary violations", Xinhua reported – ending his political career. He and his wife have not been seen since he was dismissed as party secretary of Chongqing last month.
Charismatic and brash, the 62-year-old son of a Communist party "immortal" won admirers with a string of bold initiatives, but alarmed liberals and party insiders who saw him as a dangerously ambitious rival and a potential strongman.
Heywood told friends he had helped the couple's son, Bo Guagua, to win a place at Harrow, his own alma mater, and was on good terms with the family although relations had cooled in the last year. The Wall Street Journal has cited friends who said he feared for his safety after falling out with Gu.
"According to investigation results, Bogu Kailai, wife of comrade Bo Xilai, and their son were on good terms with Heywood. However, they had conflict over economic interests, which had been intensified," said the Xinhua statement.
"The existing evidence indicated that Heywood died of homicide, of which Bogu Kailai and Zhang Xiaojun, an orderly at Bo's home, are highly suspected."
It added: "China is a socialist country ruled by law, and the sanctity and authority of law shall not be tramped. Whoever has broken the law will be handled in accordance with law and will not be tolerated, no matter who is involved."
It is not clear why the agency referred to Gu as "Bogu", which is not normal practice on the mainland. Most Chinese women keep their own names when they marry and Gu is well known in her own right, having built a reputation as a highly successful lawyer.
Bo told reporters last month that she had long ago given up her legal career for his sake, but the Wall Street Journal said she had been involved in other business dealings in China, the US and the UK over the last two decades.
In London, William Hague welcomed the reopening of inquiries. "We now look forward to seeing those investigations take place and hearing the outcome of those investigations," the foreign secretary said. "I don't want to prejudice their conduct in any way."
Steve Tsang, an expert on elite Chinese politics at Nottingham University, argued the party could have smoothed over allegations about Gu if it had wished, given that Heywood's family had not been pressing the case.
"It gave people in the party an excuse to fix Bo. He had annoyed a lot of people in the top leadership … He is completely finished politically," he said.
Tsang added that the fact he had been suspended rather than ousted outright suggested senior party figures were still discussing who should take places in the politburo and its standing committee.
"He doesn't really matter any longer. He's just a pawn in the political game … What's at stake is positioning for the succession," he added.
Others thought the suspension might be a technical requirement because the investigation into him is ongoing. Several officials and business people in Chongqing and Dalian - where Bo was previously based - have been detained or gone missing in recent weeks.
Rumours that Bo had been ousted from his party roles began circulating early on Tuesday and officials around the country were called to meetings in the afternoon, where they were briefed on events.
He won national renown with a "strike black, sing red" campaign in south-western Chongqing: a dramatic crackdown on organised crime and a drive to promote "red culture". They made him a hero to many leftists, some of whom believe he has been brought down by a plot.
But he was feared by liberals, who said the harsh tactics and populist stance of the anti-gang drive trampled over the law and echoed Maoist campaigns, and alienated many of his peers.
His ascent came to a spectacular end when his former ally and police chief Wang Lijun fled to the US consulate in Chengdu.
Wang is believed to have told the US that he had angered Bo by confronting him with suspicions about Heywood's death, while others have suggested he feared his patron was offering insufficient protection as a corruption investigation circled.
Xinhua said the reinvestigation of Heywood's death began because Wang flagged up the case with the US. Wang is now under investigation by Chinese officials.
Perhaps reflecting Bo's popular appeal, the agency reported that the official party newspaper the People's Daily will urge people to "firmly support the correct decision of the Communist Party of China central committee" in a commentary to be published on Wednesday.
It will say that Bo has damaged the cause and image of the party and the state, adding: "The facts have proven that the CPC stands for the people, accepts their supervision, never compromises on corruption and will probe and punish any violations of law and discipline".
"Disciplinary violations" is usually code for corruption allegations.
Key players
Bo Xilai
The flamboyance and obvious ambition of the 62-year-old made him a divisive figure: admirers lauded him as a bold politician who could get things done, while detractors condemned his ruthlessness. Bo has accused critics of "pouring filth" over his family.
Gu Kailai
Bo's second wife, now 51. The daughter of a Communist general, she became a high-profile lawyer known for an early success in helping Chinese firms win a court battle in the US.
Wang Lijun
Bo picked the 52-year-old police chief to lead the anti-gang campaign in Chongqing. Wang – renowned as a triad-busting supercop – became vice-mayor and was said to be a family friend. But strains between the men surfaced when he was reshuffled; days later, he fled to the US consulate.
Neil Heywood
The 41-year-old British businessman was a board member for an Aston Martin dealership in Beijing and a consultant for Hakluyt, the business intelligence firm. He told friends he got to know Bo's family when both were based in the northern city of Dalian.