China announced that Bo Xilai, the toppled Communist Party chief of the megacity of Chongqing, has been suspended from his party positions and his wife is in custody as a suspect in the killing of British businessman Neil Heywood.
The state-run Xinhua news agency said Mr. Bo was suspected of "serious discipline violations" and had been removed from the party's 25-member Politburo as well as its Central Committee.
His wife, Gu Kailai, is now with judicial authorities along with an employee of the Bo household in connection with Mr. Heywood's death. The two were "highly suspected" of the crime of "intentional homicide", Xinhua said.
Xinhua said that Ms. Gu and her son were on "good terms with Heywood. However, they had conflict over economic interests." The news agency did not name the son. However, Mr. Heywood was known to be close to the couple's son, Bo Guagua.
Chinese police have set up a team to reopen an investigation into Mr. Heywood's death, Xinhua said.