Peng was not seen in public for several weeks after leveling the accusations against Zhang Gaoli, the ex-vice premier and member of the Chinese Communist Party's Politburo Standing Committee.
She posted the allegations on social media site Weibo in early November, though her post has since been removed and her whereabouts have been unclear.
In mid-November, an email allegedly sent by Peng was received by WTA chairman Steve Simon, who expressed his confusion and disbelief at the message, which claimed the sexual assault allegations were false and that the tennis star was safely at home.
The WTA also welcomed pictures of Peng on a video call with International Olympic Committee president Thomas Bach, but a spokesperson for the women's tennis organisation insisted that did not alleviate the concern.
Simon called for a full investigation into the incident as he said the prior email only heightened his worries over Peng's safety, also threatening to suspend WTA tournament action in China until the matter was resolved.
He has since confirmed the suspension will be imposed on tournaments in China in a statement released on Wednesday.
"When on November 2, 2021, Peng Shuai posted an allegation of sexual assault against a top Chinese government official, the Women's Tennis Association recognised that Peng Shuai's message had to be listened to and taken seriously," Simon's statement read.
"The players of the WTA, not to mention women around the world, deserve nothing less.
"From that moment forward, Peng Shuai demonstrated the importance of speaking out, particularly when it comes to sexual assault, and especially when powerful people are involved.
"As Peng said in her post, 'Even if it is like an egg hitting a rock, or if I am like a moth drawn to the flame, inviting self-destruction, I will tell the truth about you.' She knew the dangers she would face, yet she went public anyway. I admire her strength and courage."
"With the full support of the WTA Board of Directors, I am announcing the immediate suspension of all WTA tournaments in China, including Hong Kong."— wta (@WTA) December 1, 2021
The statement outlined a number of grievances with the way the Chinese state has handled the matter, before adding: "As a result, and with the full support of the WTA Board of Directors, I am announcing the immediate suspension of all WTA tournaments in China, including Hong Kong.
"In good conscience, I don't see how I can ask our athletes to compete there when Peng Shuai is not allowed to communicate freely and has seemingly been pressured to contradict her allegation of sexual assault."