"We can confirm that Chinese authorities have declined to renew Chun Han's press credentials. We continue to look into the matter," a spokesman for Dow Jones, publisher of the Wall Street Journal, said in a statement to The Washington Post.
China's Foreign Ministry, in a faxed statement, said the Chinese government handled affairs concerning foreign news organizations and correspondents in accordance with the country's laws.
"We firmly oppose that a few foreign reporters are maliciously tarnishing China, and we don't welcome such reporters," it said.
The Journal story would have been doubly provocative for Beijing given its subject's proximity to Xi, a leader who has yoked his public image to a years-long anti-corruption drive and repeatedly exhorted party cadres to rein in their freewheeling family members.
Before the report's publication, Journal representatives in Beijing were warned by Chinese Foreign Ministry officials that running the story would result in serious consequences, two people with knowledge of the matter said.
After the Journal published the story following a joint investigation with Australian media, the Chinese Foreign Ministry denounced the reporting as "groundless accusations based on rumors" and an attempt to smear China.
The other Beijing-based reporter on the Journal story, the Australian journalist Philip Wen, recently received a three-month visa, a far shorter duration than the one year typically given to journalists working in China.
A 2012 Bloomberg News investigative report disclosing the Xi family's investments resulted in a visa ban for the news agency that was only lifted after extensive discussions between Bloomberg executives and Chinese officials.
At least half a dozen correspondents for the New York Times faced lengthy delays receiving new visas or were expelled outright after the Times published a similar expose that year about former Chinese Premier Wen Jiabao's family wealth.