Gordon Chang is Right, Recall Chinese Diplomats

Posted on May 20, 2018May 20, 2018 by Denise Simon

Today, May 20, Steve Mnuchin, Treasury Secretary announced the tariffs are on hold, pending some kind of a tentative agreement. Really Steve? This as the North Korea Kim/Trump talks are on shaky ground. China wants North Korea to have nuclear weapons, period.

China is a Leninist state. I spent a month on the mainland, I saw it.

A threat to the United States? Yes. To allies? Yes

China has overtly weaponized those pesky island with a H-6 bomber aircraft landing on Woody Island. Did President Xi share any of this with President Trump at that confab at Mar A Lago? The matter of the South China Sea and those disputed waters and island is hardly any new threat. It goes back to at least 2014 and President Obama was briefed often on the building Chinese aggression. There was a temporary Asia Pivot by Obama but it was merely a gesture in retrospect. That Asia Pivot hardly raised any eyebrows in Beijing.

The reason to recall diplomats and expel others from the United States? At least the first one, laser attack on our U.S. airmen.

8 May 2018 — The two airmen reported symptoms of dizziness and seeing rings. Pointing lasers at aircraft is extremely dangerous. It can temporarily blind pilots, and in the United States it’s a federal offense. While the pilots are expected to make a full recovery, the incident raises questions about how far the United States will allow China to push it without pushing back.

But first let’s back up. What’s everyone doing in Djibouti, a tiny country in eastern Africa? America has a base in Djibouti because of its proximity to Yemen, a terrorist incubator. The 4,000 U.S. troops stationed there are tasked with conducting counter-terrorism operations in the region.

photo

What about China? Well, that’s a little more opaque. China opened its Djibouti base last August, claiming that its purpose is to help with anti-piracy patrols and other peacekeeping missions. It’s supposedly a logistics base, but here’s the thing: China doesn’t have foreign military bases anywhere in the world — except in Djibouti, eight miles from the U.S. base.

But is worse…anyone paying attention outside of Gordon Chang and Steven Mosher? Yes thankfully, Congress is. FINALLY

Suggest you watch this video, consider how much of it, if not all of it was stolen from the United States.

So, let us consider some of these items shall we?

Why are we giving China access to our defense contractors? Additionally, there are cyber part operations and hacks of the F-22 and F-35.
Who is challenging the BRI, Belt Road Initiative?
The South China Sea is part of the Blue Water Territory. China is building a navy to be twice the size of that of the United States. That includes up to 12 nuclear powered carrier battle groups.
No one challenged China on the Scarborough Shoal achievement, that is the new China model for hegemony.
China wants all telecom advances developed by the United States for it’s fiber-liked command centers and is getting them. China wants to lead on 5G, then there is outer-space.
China and Russia have an alliance on military, missile and hybrid tactics to alter the balance of global power.
Then there was the China Argentina issue with the Falklands, again.
China has instituted national re-education program. The program is a hallmark of China’s emboldened state security apparatus under the deeply nationalistic, hard-line rule of President Xi Jinping. It is partly rooted in the ancient Chinese belief in transformation through education – taken once before to terrifying extremes during the mass thought reform campaigns of Mao Zedong, the Chinese leader sometimes channeled by Xi.
A significant Chinese operation is debt-trapping. Sri Lanka and the Philippines are already falling due to this.
China forcing Venezuela to give up Blanquilla Island over debt.
If you look at the Qing Dynasty, that is President Xi’s vision and Taiwan is an important key to that achievement. China Wants to Build a Massive Underwater Tunnel to Taiwan and to own/control Taiwan by 2020.
OBOR, One Belt, One Road is a sophisticated trade strategy on a global scale and it threatens currency stability, port security, transportation channels and debt.

North/South Korea Basis Points for Talks with President Trump

Posted on May 18, 2018May 18, 2018 by Denise Simon

The meeting happen between Kim Jung Un and President Trump which has been scheduled sits on shaky ground due to recent demands by the United States including applying the Libya model of the nuclear program in North Korea.

Talks between North Korea and South Korea have been suspended after the items below were agreed to by both countries, known as the Panmunjom Declaration for Peace:

I. South and North Korea will reconnect the blood relations of the people and bring forward the future of co-prosperity and unification led by Koreans by facilitating comprehensive and ground-breaking advancement in inter-Korean relations. Improving and cultivating inter-Korean relations is the prevalent desire of the whole nation and the urgent calling of the times that cannot be held back any further.

1) South and North Korea affirmed the principle of determining the destiny of the Korean nation on their own accord and agreed to bring forth the watershed moment for the improvement of inter-Korean relations by fully implementing all existing agreements and declarations adopted between the two sides thus far.

2) South and North Korea agreed to hold dialogue and negotiations in various fields including at high level, and to take active measures for the implementation of the agreements reached at the summit.

3) South and North Korea agreed to establish a joint liaison office with resident representatives of both sides in the Gaeseong region in order to facilitate close consultation between the authorities as well as smooth exchanges and cooperation between the peoples.

4) South and North Korea agreed to encourage more active cooperation, exchanges, visits and contacts at all levels in order to rejuvenate the sense of national reconciliation and unity. Between South and North, the two sides will encourage the atmosphere of amity and cooperation by actively staging various joint events on the dates that hold special meaning for both South and North Korea, such as June 15, in which participants from all levels, including central and local governments, parliaments, political parties, and civil organisations, will be involved. On the international front, the two sides agreed to demonstrate their collective wisdom, talents, and solidarity by jointly participating in international sports events such as the 2018 Asian Games.

5) South and North Korea agreed to endeavour to swiftly resolve the humanitarian issues that resulted from the division of the nation, and to convene the Inter-Korean Red Cross Meeting to discuss and solve various issues including the reunion of separated families. In this vein, South and North Korea agreed to proceed with reunion programs for the separated families on the occasion of the National Liberation Day of August 15 this year.

6) South and North Korea agreed to actively implement the projects previously agreed in the 2007 October 4 Declaration, in order to promote balanced economic growth and co-prosperity of the nation. As a first step, the two sides agreed to adopt practical steps towards the connection and modernisation of the railways and roads on the eastern transportation corridor as well as between Seoul and Sinuiju for their utilisation.

II. South and North Korea will make joint efforts to alleviate the acute military tension and practically eliminate the danger of war on the Korean Peninsula.

1) South and North Korea agreed to completely cease all hostile acts against each other in every domain, including land, air and sea, that are the source of military tension and conflict. In this vein, the two sides agreed to transform the demilitarised zone into a peace zone in a genuine sense by ceasing as of May 2 this year all hostile acts and eliminating their means, including broadcasting through loudspeakers and distribution of leaflets, in the areas along the Military Demarcation Line.

2) South and North Korea agreed to devise a practical scheme to turn the areas around the Northern Limit Line in the West Sea into a maritime peace zone in order to prevent accidental military clashes and guarantee safe fishing activities.

3) South and North Korea agreed to take various military measures to ensure active mutual cooperation, exchanges, visits and contacts. The two sides agreed to hold frequent meetings between military authorities, including the defence ministers meeting, in order to immediately discuss and solve military issues that arise between them. In this regard, the two sides agreed to first convene military talks at the rank of general in May.

III. South and North Korea will actively cooperate to establish a permanent and solid peace regime on the Korean Peninsula. Bringing an end to the current unnatural state of armistice and establishing a robust peace regime on the Korean Peninsula is a historical mission that must not be delayed any further.

1) South and North Korea reaffirmed the Non-Aggression Agreement that precludes the use of force in any form against each other, and agreed to strictly adhere to this Agreement.

2) South and North Korea agreed to carry out disarmament in a phased manner, as military tension is alleviated and substantial progress is made in military confidence-building.

3) During this year that marks the 65th anniversary of the Armistice, South and North Korea agreed to actively pursue trilateral meetings involving the two Koreas and the United States, or quadrilateral meetings involving the two Koreas, the United States and China, with a view to declaring an end to the war and establishing a permanent and solid peace regime.

4) South and North Korea confirmed the common goal of realising, through complete denuclearisation, a nuclear-free Korean Peninsula. South and North Korea shared the view that the measures being initiated by North Korea are very meaningful and crucial for the denuclearisation of the Korean Peninsula and agreed to carry out their respective roles and responsibilities in this regard. South and North Korea agreed to actively seek the support and cooperation of the international community for the denuclearisation of the Korean Peninsula.

The two leaders agreed, through regular meetings and direct telephone conversations, to hold frequent and candid discussions on issues vital to the nation, to strengthen mutual trust and to jointly endeavour to strengthen the positive momentum towards continuous advancement of inter-Korean relations as well as peace, prosperity and unification of the Korean Peninsula.

In this context, President Moon Jae-in agreed to visit Pyongyang this (northern) autumn.

April 27, 2018

Done in Panmunjom

Moon Jae-in, President, Republic of Korea

Kim Jong-un, Chairman, State Affairs Commission, Democratic People’s Republic of Korea

***

Meanwhile, are U.S. officials assigned to working the back channel deals with North Korea suggesting lighter demands of North Korea in a long-term layered approach? Yes, just a down payment on partial denuclearization. Susan Thornton is pushing more feeble demands. Susan is the acting assistant secretary at the State Department and Pompeo wants her replaced. She has also pushed for a more conciliatory approach to China.

Susan should be removed and now we can see there is a real divided and fractured approach to the trade, military and nuclear issues in Asia.

President Trump and ZTE

Posted on May 15, 2018May 15, 2018 by Denise Simon

There has to be an explanation for President Trump’s interest in saving jobs at ZTE.

In Concession, Trump Will Help China's ZTE 'Get Back Into ... photo

Could it be part of a trade issue with China to ensure China continues pressure on North Korea? Could it be to keep American intellectual property protected in some obscure plot where China continues to steal intelligence to eventually control all 5G?

The 2019 NDAA includes a provision to prohibit ZTE and Huawei use in the United States.

Reuters: “I hope the administration does not move forward on this supposed deal I keep reading about,” Republican Senator Marco Rubio said. Bilateral talks between the world’s two biggest economies resume in Washington this week.

The Wall Street Journal has reported Beijing would back away from threats to slap tariffs on U.S. farm goods in exchange for easing the ban on selling components to ZTE.

“They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio said at a Foreign Relations Committee hearing on Asia policy.

Trump had taken to Twitter on Sunday with a pledge to help the company, which has suspended its main operations, because the penalties had cost too many jobs in China. It was a departure for a president who often touts “America First” policies.

The Commerce Department in April found ZTE had violated a 2017 settlement created after the company violated sanctions on Iran and North Korea, and banned U.S. companies from providing exports to ZTE for seven years.

U.S. companies are estimated to provide 25 percent to 30 percent of components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.

The suggestion outraged members of Congress who have been pressing for more restrictions on ZTE. Some U.S. lawmakers have alleged equipment made by ZTE and other Chinese companies could pose a cyber security threat.

“Who makes unilateral concessions on the eve of talks after you’ve spent all this time trying to say, correctly in my view, that the Chinese have ripped off our technology?” Senator Ron Wyden, the senior Democrat on the Senate Finance Committee, which oversees trade policy, told Reuters.

Wyden, who is also on the Intelligence Committee, was one of 32 Senate Democrats who signed a letter on Tuesday accusing Trump of putting China’s interests ahead of U.S. jobs and national security.

The company has denied wrongdoing.

Republican Representative Mac Thornberry, chairman of the House Armed Services Committee, said at a Bloomberg event on Tuesday he did not expect lawmakers would seek to remove a ban on ZTE technology from a must-pass annual defense policy bill making its way through Congress.

“I confess I don’t fully understand the administration’s take on this at this point,” Thornberry said. “It is not a question to me of economics, it is a question of security.”

Consider:

Axios: President Trump’s desire to help save ZTE could set the tone for the treatment of another Chinese telecom company that’s under investigation for sanctions violations, Axios’ Erica Pandey writes.

The backdrop:

ZTE has been found guilty of breaking U.S. law three times, including violating sanctions by selling equipment with American parts to Iran and North Korea.
The Pentagon has banned the sale of ZTE and Huawei phones at retail stores on military bases, citing concerns that the companies are using their devices to spy on military personnel.
ZTE and Huawei are both key players in China’s race to dominate 5G and the future of mobile communication. The Chinese Communist Party is painting U.S. moves against the Chinese phone makers as efforts to knock China out of the 5G race.

Between the lines: “Ross had a color wheel of approaches [on ZTE] ranging from a handslap to breaking them as a company,” says Chris Johnson, a former CIA China analyst who’s now at the Center for Strategic and International Studies.

The Chinese might have stomached a slap on the wrist, but by banning American companies from selling parts to ZTE, Ross served up a punishment harsh enough to halt operations. China in turn made ZTE a top trade priority and used its massive leverage to potentially sway the president.

Why it matters: China could use Trump’s apparent pivot on ZTE as a stepping stone to free Huawei. Or the ZTE case could be a lesson for the U.S. in negotiating with China.

How the ZTE deal could fare:

“The U.S. and China are closing in on a deal that would give China’s ZTE Corp. a reprieve from potentially crippling U.S. sanctions in exchange for Beijing removing tariffs on billions of dollars of U.S. agricultural products, said people in both countries briefed on the deal,” the Wall Street Journal’s Lingling Wei and Bob Davis report.
Steven Mnuchin is leading the U.S. in negotiating a deal that puts the brakes on actions against ZTE in exchange for China buying down its trade surplus, reports Axios’ Jonathan Swan.
China’s trade negotiator, Liu He, is in DC today. Axios contributor Bill Bishop hears that Liu will arrive “with an open checkbook to buy down the deficit but that progress on anything structural will be much harder.”

The bottom line: Taking the toughest possible approach to China might not be the smartest when the Asian power is stronger than ever and prepared to fight back.

$100,000 to Destroy the New US Embassy in Jerusalem

Posted on May 14, 2018May 14, 2018 by Denise Simon

Sheesh…the building has been there for years already. Further, there are several other countries that are moving their embassies as well.

About 800 guests attended the opening ceremony. The U.S. was represented by a formally designated “Presidential Delegation” led by Deputy Secretary of State, John. J. Sullivan, and including U.S. Ambassador to Israel, David Friedman, Treasury Secretary Steve Mnuchin, Presidential Advisor Ivanka Trump and her husband, Jared Kushner, and Jason Greenblatt, the White House’s lead negotiator. A bicameral Congressional delegation and other U.S. dignitaries were also present for the ceremony, which was also attended by top diplomats from 33 other nations.

***

The Jerusalem Embassy Act of 1995 is a public law of the United States passed by the 104th Congress on October 23, 1995.

The Act recognized Jerusalem as the capital of the State of Israel and called for Jerusalem to remain an undivided city. Its purpose was to set aside funds for the relocation of the Embassy of the United States in Israel from Tel Aviv to Jerusalem, by May 31, 1999. For this purpose it withheld 50% of the funds appropriated to the State Department specifically for “Acquisition and Maintenance of Buildings Abroad” as allocated in fiscal year 1999 until the United States Embassy in Jerusalem had officially opened. Israel’s declared capital is Jerusalem, but this is not internationally recognized, pending final status talks in the Israeli–Palestinian conflict.

Despite passage, the law allowed the President to invoke a six-month waiver of the application of the law, and reissue the waiver every six months on “national security” grounds. The waiver was repeatedly invoked by Presidents Clinton, Bush, and Obama.

Iran continues to ignore history, facts and hard tangible evidence about Jerusalem. Furthermore we were told by John Kerry and Barack Obama were to be good citizens of the world after the completion of the Iranian nuclear deal….well three things at least have surfaced since the United States withdrew.

***

A hardline Iranian organization is reportedly offering a $100,000 reward to any person who bombs the newly opened U.S. embassy in Jerusalem, according to a translation of Farsi language reports.
A group known as the Iranian Justice Seeker Student Movement is reported to have disseminated posters calling for an attack on the U.S. embassy in Jerusalem, which has been opposed by Palestinian and Iranian officials as an affront to the holy city.

“The Student Justice Movement will support anybody who destroy the illegal American embassy in Jerusalem,” the poster states in Farsi, Arabic, and English, according to an independent translation of the propaganda poster provided to the Free Beacon.

There will be a “$100,000 dollar prize for the person who destroys the illegal American embassy in Jerusalem,” the poster states.

The call for an attack on the new embassy is just the latest escalation by hostile Islamic states and leaders who have lashed out at the United States and President Donald Trump for making good on a campaign promise to relocate the embassy from Tel Aviv to Israel’s declared capital city of Jerusalem.

News of the bomb threat was first reported by the University Student News Network, a regional Farsi-language site that aggregates relevant news briefs.

“The Student Movement for Justice declared, ‘Whoever bombs the embassy’s building will receive a $100,000 award,'” the report states. “It is necessary to mention that the steps by Trump to transfer the US Embassy to Holy Qods [Jerusalem] has led to the anger and hatred of Muslims and liberators throughout the world.'”

Michael Rubin, a former Pentagon adviser and expert on rogue regimes, told the Washington Free Beacon that terrorism of this nature is embedded in the Iranian regime’s hardline stance.

“Unfortunately, terrorism directed toward diplomats and embassies has become a central pillar of the Islamic Republic’s culture,” Rubin said. “Terrorism is lionized in Iranian schools. This bounty is more the rule than the exception. To blame Washington or Jerusalem is to blame the victim and give terrorists a veto over U.S. policy.”

Behnam Ben Taleblu, an research fellow at the Foundation for Defense of Democracies, described the poster as repulsive and blamed the Iranian ruling regime for fostering such an attitude.

“This is nothing short of an invitation to a heinous act of an international terror by a student group that looks up to the world’s foremost state sponsor of terror—the Islamic Republic of Iran,” he said.
TEHRAN – New freight train connections usually only have a limited potential to make global headlines, but a new service launched from China on Thursday could be different. Its cargo – 1,150 tons of sunflower seeds – may appears unremarkable, but its destination, however, is far more interesting: Tehran, the capital of Iran .
The launch of a new rail connection between Bayannur in China ‘s Inner Mongolia Autonomous Region and Iran was announced by the official news agency Xinhua on Thursday. Its exact path was not described in the dispatch, but travel times will apparently be shortened by at least 20 days in comparison to cargo shipping. The sunflower seeds are now expected to arrive in Tehran in about two weeks.

While the seeds are making their steady progress across Asia, there’s a growing risk of Iran and Israel <link>breaking into open conflict in the meantime. French President Emmanuel Macron has already predicted that the U.S. decision to pull out of the Iran deal would lead to war, especially after Iranian Foreign Minister Mohammad Javad Zarif warned that the country may restart its nuclear program if U.S. sanctions are imposed. Iranian rocket attacks on Wednesday and the subsequent Israeli retaliatory attacks on Thursday indicated how quickly the situation could indeed escalate.

While the United States is now urging foreign companies to wind down their operations in Iran , China appears to be doing the opposite. Thursday’s freight train connection launch was only the latest measure Beijing has taken to intensify trade relations with Iran and there seem to be no plans so far to give in to U.S. demands.

China has indicated it might defy US President Donald Trump’s sanctions on Iran by doing business with it.

During a press briefing on Wednesday, Chinese Foreign Ministry spokesman Geng Shuang said that Iran and China would “maintain normal economic ties and trade.”

“We will continue with our normal and transparent practical cooperation with Iran on the basis of not violating our international obligations,” he said. China faces the same problem U.S. allies in Europe are currently facing <link>: Even if European governments are opposed to new sanctions on Iran , European companies would have to abide by those rules or risk severe fines by the United States.

Even though they have expressed their outrage, some high-ranking European officials have already acknowledged that they would have few options to rein in the United States if it decided to punish European companies for continuing to trade with Iran .

China , however, appears more defiant.

Iran ‘s Hassan Rouhani had established a track record for bridge-building in nuclear talks with European powers

When asked whether China would order its companies to withdraw from Iran to avoid U.S. sanctions, the Chinese Foreign Ministry spokesman indicated that Beijing might defy the Trump administration. “I want to stress that the Chinese government is opposed to the imposition of unilateral sanctions and the so-called long-arm jurisdiction by any country in accordance with its domestic laws,” he said.

China has to some extent managed to circumvent U.S. sanctions in the past and may be able to do the same again this time. Some analysts have even suggested that Chinese entities could act as intermediaries for European companies that want to continue trading with Iran , but fear violating U.S. sanctions. Such sanctions would be particularly damaging to European businesses operating in the United States, such as plane manufacturer Airbus.

Speaking to CNBC, former U.S. diplomat Carlos Pascual said that oil sales from Iran via China or Russia to the rest of the world could circumvent U.S. measures.
The Chief of Staff of the Iranian Armed Forces Major General Mohammad Hossein Baqeri has said his country seeks expansion in military cooperation with Afghanistan.
Gen. Baqeri reportedly informed regarding his country’s intent during a meeting with the Afghan defense minister Gen. Tariq Shah Bahrami.

“The shared backgrounds between the two countries of Iran and Afghanistan, including religion and language, have brought them together in such way that no obstacle can undermine their close relations, specially in combatting the terrorist groups,” the top Iranian General was quoted as saying by Fars News.

He also expressed the hope that the Afghan military delegation’s visit would result in more cooperation between the two countries’ armed forces.

The top Iranian General’s intent to expand military cooperation with Afghanistan comes as the country is accused of supporting the certain insurgent groups in Afghanistan.

“Iran’s desire for influence in Afghanistan remains strong. Iran seeks increased influence in Afghanistan through government partnerships, bilateral trade, and cultural and religious ties,” Pentagon stated in its report regarding Afghanistan late last year.

The report also adds that Iran provides some support to the Taliban and publicly justifies its relationship with the Taliban as a means to combat the spread of ISIS-K in Afghanistan.

“Iran’s support to the Taliban undermines the Afghan Government’s credibility, adds to instability in the region, and complicates strategic partnership agreements,” Pentagon had warned.

China is Buying America with and without CFIUS

Posted on May 7, 2018May 7, 2018 by Denise Simon

Statistics found here.

When China is not buying America, they are busy in other parts of the globe buying places like Europe. That is how China is expanding, including stealing intelligence, espionage and hacking. The parts of Britain not owned by Russia are being gobbled up by China. Russia has a long plan and China has a long plan, not too sure about the United States, Britain or other allies.

There has been many discussions in Congress to reform CFIUS, Committee on Foreign Investment in the United States. The most widely noticed scandal with CFIUS was the Uranium One deal.

U.S. watchdog expands scrutiny to more Chinese deals ... photo

Anyway, John Carlin recently spoke with the National Law Journal about bipartisan legislation introduced in November in the U.S. Senate and House of Representatives by U.S. Sen. John Cornyn, R-Texas, and U.S. Rep. Robert Pittenger, R-North Carolina, respectively, to overhaul the CFIUS review process. CFIUS reviews, which are voluntary, are meant to protect the nation from business transactions that pose a national security or strategic risk to the United States. The panel has the authority to require the transaction’s parties to undertake risk mitigation, such as carving out a specific location or element of the deal.

The panel can also recommend that the president block a deal entirely. President Donald Trump, for example, in September blocked the sale of Oregon-based Lattice Semiconductor Corp. to a Chinese company. A deal by Anthony Scaramucci, briefly a White House communications director, to sell his stake in SkyBridge Capital to Chinese company HNA Group Co., which is partly government-owned, appears to be in jeopardy after not yet clearing its nearly yearlong CFIUS review, according to reports in financial media including Bloomberg News in mid-December.Treasury Secretary Steven Mnuchin, who chairs the panel, has urged toughening CFIUS reviews.

While leading the DOJ’s National Security Division, Carlin oversaw the indictment in 2014 of five Chinese military members for economic espionage for hacks against several big U.S. companies, among them United States Steel, Westinghouse, Alcoa Inc. and SolarWorld from 2006 through 2014. The division also investigated the cyberattack on Sony Pictures Entertainment in late 2014 that the U.S. government determined originated in North Korea; and brought charges with the FBI against seven Iranians working for computer companies under contract to the Iranian government and military that conducted cyberattacks between 2011 and 2013 against 46 financial institutions including Wells Fargo and JPMorgan Chase & Co. More here.

The CFIUS review process also appears to be affecting efforts by China Oceanwide Holdings Group Co. Ltd. to acquire Genworth Financial Inc.

BusinessInsider: In 2016, General Electric sold its appliances business to Qingdao-based Haier. China’s Zoomlion made an unsolicited bid for heavy-lifting-equipment maker Terex Corporation, and property and investment firm Dalian Wanda announced a deal to buy a majority stake in Hollywood’s Legendary Entertainment.

On Friday, a Chinese-led investor group announced it would buy the Chicago Stock Exchange. And then there’s ChemChina’s record-breaking deal for the Swiss seeds and pesticides group Syngenta, valued at $48 billion according to Dealogic.

There have already been 82 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $73 billion in value, according to Dealogic. That’s up from 55 deals worth $6.2 billion in the same period last year.

Last year was a record-breaker for Chinese outbound deals, with 607 deals valued at $112.5 billion in total. Just over one month into 2016, and China is more than halfway to breaking that record.

So what’s going on?

One interpretation is that Chinese companies are simply hungry for growth as that country’s economy slows, and they’re feeding themselves by buying other companies.

“With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth,” Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told Business Insider.

Last year, investment bankers earned $558 million in revenue from Chinese outbound M&A deals, according to Dealogic. This year, that number is at $121 million to date.

But there are, of course, a number of challenge these deals will face — especially in the US.

M&A deals in the US are subject to scrutiny by the Committee on Foreign Investment in the United States, or CFIUS. It recently prevented the $3.3 billion sale of Philips’ lighting business to a group of buyers in Asia.

The 82 Chinese outbound deals announced so far in 2016 are worth more than half of 2015’s total Chinese outbound-deal value.
Andy Kiersz/Business Insider

“I would be very surprised if CFIUS did not have an interest in taking a look at this deal,” said Anne Salladin of law firm Stroock & Stroock, referring to the Chicago Stock Exchange deal.