China is Buying America with and without CFIUS

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.

feb 5 total china m&a deal value
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.

Did the Trump Operation Hire Black Cube for Dirty Ops?

The allegations are that certain former Obama officials were part of discredit operation by Donald Trump. Humm, perhaps but who has been fully discredited that anyone seems to know or care about?

‘Dirty Ops’?

The Observer did not name any Trump officials or the private Israeli intelligence firm said to be involved in the plot, which was allegedly hatched when “Trump’s team contacted investigators days after Trump visited Tel Aviv a year ago,” according to the report. The plan was to “get dirt” on Rhodes and Kahl “as part of an elaborate attempt to discredit the deal,” The Observer said. Trump has suggested he will not recertify that Iran is complying with the pact when it comes up for renewal May 12. (The U.K., Russia, France and Germany also signed the deal.)

Veteran Washington foreign affairs journalist Laura Rozen told Newsweek that Kahl showed her the first email his wife got from the person, who identified herself as “Adriana Gavrilov from Reuben Capital Partners.” Rozen said she recognized Reuben Capital from a New Yorker story by Ronan Farrow that described it as a cover for Black Cube, a private Israeli spy firm reportedly hired by Hollywood mogul Harvey Weinstein to dig up dirt on the women who accused him of sexual misconduct, harassment, assault or rape.

Farrow reported Sunday on another attempt linked to Black Cube: In 2017, Rhodes’s wife, a former State Department official, received a proposal from a London-based film company called Shell Productions for a movie that would follow the personal lives of “government officials in the positions that determine war and peace” during times of geopolitical crisis, including “nuclear negotiations with a hostile nation.” She said she found the pitch “bizarre” and never responded. Farrow said two sources told him the proposal originated with Black Cube.

*** War News Updates: An Insider's View On White House Policy ...  White House aide Ben Rhodes responds to controversial New ...

A former deputy assistant to president Barack Obama and national security adviser to vice president Joe Biden responded on Twitter Sunday night to reports he was targeted by the private Israeli security firm Black Cube in an attempt to discredit the 2015 Iran nuclear deal.

 

Putin Denies Military Operations Against Ukraine, Proof Emerges

Map of Mariupol in Ukraine - ABC News (Australian ...

photo

The Ambassador predicted liberation of Mariupol in 2014, the plan was in place, was anyone listening? Liberation? That is how Moscow packaged it? And the Active Measures/propaganda continues.

Related reading: Ukraine Fortifies Its Airwaves Against Russian TV Broadcasts

Russian troops attacking Mariupol, Ukrainian militia ... photo

Breaking: Russian Officers and Militants Identified as Perpetrators of the January 2015 Mariupol Artillery Strike

The investigation can be viewed here

На русском языке

The Bellingcat Investigation Team has determined conclusively that the artillery attack on targets in the Ukrainian town of Mariupol on 24 January 2015, which resulted at least 30 civilian deaths and over 100 injuries, came from Russia-controlled territory. Bellingcat has also determined that the shelling operation was instructed, directed and supervised by Russian military commanders in active service with the Russian Ministry of Defense. Bellingcat has identified nine Russian officers, including one general, two colonels, and three lieutenant colonels, involved directly with the military operation.

Furthermore, Bellingcat has determined that two artillery batteries of Multiple Launch Rocket Systems (MLRS) were transported from Russia into Ukraine the day before the Mariupol operation. In the early morning of 24 January 2015, these batteries were deployed near the village of Bezimenne exclusively for the shelling of targets in and around Mariupol, after which they were repatriated back into Russia.

In the course of analyzing the events in the eve of and on 24 January 2015, Bellingcat has also identified two Russian generals involved with the selection and assignment of Russian artillery specialists to commanding roles in eastern Ukraine.

This investigation was made possible due to access to raw video and audio data that is being submitted by the Ukrainian government to the International Court of Justice as part of an ongoing legal case. This data was made available to a small group of international investigative media for the purposes of independent assessment. Bellingcat and its media partners analyzed a large volume of intercepted calls from and to participants in the armed conflict located in the area of Bezimenne at the time of shelling. Bellingcat conducted detailed cross-referencing of events, names and locations, as well as metadata from the calls, to open source data, including satellite photography data, social media posts, and voice samples from public statements of some of the identified persons. A detailed analysis permitted the identification of persons and military units, and the reconstruction of events leading up to the shelling of residential areas in Mariupol.

While previous reports, including the OSCE Special Monitoring Mission (SMM) to Ukraine report from 24 January 2015, have identified that shelling of Mariupol’s residential areas came from separatist-controlled territory, Bellingcat’s investigation is the first to fully detail and identify the role of active Russian military units, as well as the direct commanding role of active Russian army officers in this military operation.

Our full report identifying the nine Russian officers involved with the military operation that led to the deaths of 30 Ukrainian civilians in Mariupol will be published later this week. Today, we are revealing the names of these individuals, along with a sampling of the telephone conversations that led to their identification.

The Russian officers who were in charge on high and lower levels of the MLRS batteries on the day of the shelling at Mariupol, or provided target instructions from another location in Eastern Ukraine, have been identified by Bellingcat as:

  • Major General Stepan Stepanovich Yaroshchuk
  • Alexander Iozhefovich Tsapliuk, call sign ‘Gorets’
  • Alexander Anatolevich Muratov
  • Maksim Vladimirovich Vlasov, call sign ‘Yugra’
  • Sergey Sergeyevich Yurchenko, call sign ‘Voronezh’
  • Alexander Valeryevich Grunchev, call sign ‘Terek’

The Russian officers who were in charge of selecting and sending artillery commanders and artillery equipment to Eastern Ukraine have been identified by Bellingcat as:

  • Colonel Oleg Leargievich Kuvshinov
  • Major General Dmitry Nikolaevich Klimenko
  • Colonel Sergey Ivanovich Lisai

The two Russian and Ukrainian militants in direct charge of the artillery units that shelled Mariupol have been identified by Bellingcat as:

  • Alexander Mikhailovich Evtody, call sign ‘Pepel’
  • Grayr Manukovich Egiazaryan, call sign ‘Shram’

Our full investigation, with biographical details on each of these men, our research process, and our analysis of the shelling attack itself, will be published later this week.

The investigation can be viewed here

Facebook Suggested Friends Feature Recruited for ISIS

Ooops, call it Artificial Intelligence or an automated outcome friend feature because Mark Zuckerberg thinks connecting people to be friends globally is a good thing. In this case, not so much and who was paying attention? Further, has it been fixed? Nah.

Remember the time when Islamic State has mastered social media to exploit their jihad successes including their videos and publications? The world was in shock and yet, it continues today.

What about al Qaeda, or other domestic militant groups? Facebook says there is no easy fix, what? Anyone considering other social media platforms or the tech companies such as Google?

Facebook (FB) is being accused of inadvertently helping Islamist extremists connect and recruit new members. A new report in The Telegraph cites research suggesting that the social media giant connected and introduced thousands of extremists through its “suggested friends” feature. One writer who spoke to CBSN says “it’s cause for concern.”

The research was conducted by the Counter Extremism Project, a non-profit organization that pressures companies to remove extremist content online. It plans to release its findings in an extensive report later this month.

“The failure to effectively police its platform has allowed Facebook to become a place where extensive (Islamic State of Iraq and Syria or ISIS) supporting networks exist, propaganda is disseminated people are radicalized and new supporters are recruited,” researcher Gregory Waters told The Telegraph.

Facebook is already facing criticism for failing to remove terrorist material from its platform. The platform has also been blamed for spreading disinformation that stokes violence in Myanmar.

“There is no place for terrorists on Facebook,” a Facebook spokesperson said in a statement. “We work aggressively to ensure that we do not have terrorists or terror groups using the site, and we also remove any content that praises or supports terrorism. 99 percent of ISIS and Al Qaeda-related content we remove is found by our automated systems.”

J.M. Berger, author of “Extremism” and a fellow with the Counter-Terrorism Strategic Communications program, told CBSN’s Elaine Quijano that this issue is something that’s been known for some time and says “it’s cause for concern,” but further analysis of the research is needed. Berger said that “the online environment for ISIS and other jihadist extremists is much more difficult than it was just a couple of years ago.”

“It’s a problem we’ve known about for a long time … I first wrote about it in 2013,” Berger said. “All of the social media platforms use algorithms that allow them to suggest content that you might be interested in. It’s a key, integral part of their functioning and what we’ve seen is that these algorithms will recommend whatever kind of content … whether it’s extremist content or normal content. Managing that is a slightly different problem than managing extremist content where you go in and look for keywords.”

“You can be on Facebook and be an ISIS supporter and not post content that would get you suspended — if you don’t put anything publicly than you’re not going to get caught,” Berger explained. “But if you’re part of a social network that supports ISIS, then once a person becomes friends with you — Facebook is going to suggest that they all become friends.”

Berger elaborated: “It used to be that it was extraordinarily easy to find this content — to find other people doing active recruiting who are being open supporters — now that is no longer the case. We can’t realistically hope for 100 percent elimination of this content on these platforms, but now the question is how much is left?”

Secretly John Kerry Traveling to Save the Iran Deal

Secret Diplomacy - Obama: The Price of Hope Video ... photo

DIPLOMACY WORKS is John Kerry’s operation. In February he spoke at the Munich Security Conference. While declaring he is a great friend of Israel and that Iran does present threats, Kerry declares we did not concede anything with regard to the missile components inside the agreement known as the Joint Comprehensive Plan of Action.

Who are some of the ‘experts’ that collaborate on policy at Diplomacy Works?

Ernest Moniz, Siegfried Hecker, Federica Mogherini, Richard Lugar, and even Theresa May. We can add in Ephrai Halevy, Colin Powell and Mike Breen. On the ADVISORY COUNCIL at Diplomacy Works beyond John Kerry is Antony Blinken, Wendy Sherman, Nicholas Burns, Michele Flournoy, Puneet Talwar, Colin Kahl, Robert Malley, David Wade, Jon Finer, Jen Psaki and Jeff Prescott.

John Kerry and his team are working the channels hard to preserve the Iran nuclear deal and that includes having the UN Secretary General Antonio Guterres on his side.

It is curious there is no mention of Global Zero or Ploughshares on the Diplomacy Works website, nor is Ben Rhodes or others from the Obama administration mentioned such as Susan Rice or John Brennan.

Iran sanctions lifted after Tehran complies with nuclear deal.

So, what about John’s travels? Given what the Boston Globe provided, it appears John is a commissioned paid sales representative to Iran….

WASHINGTON — John Kerry’s bid to save one of his most significant accomplishments as secretary of state took him to New York on a Sunday afternoon two weeks ago, where, more than a year after he left office, he engaged in some unusual shadow diplomacy with a top-ranking Iranian official.

He sat down at the United Nations with Foreign Minister Javad Zarif to discuss ways of preserving the pact limiting Iran’s nuclear weapons program. It was the second time in about two months that the two had met to strategize over salvaging a deal they spent years negotiating during the Obama administration, according to a person briefed on the meetings.

With the Iran deal facing its gravest threat since it was signed in 2015, Kerry has been on an aggressive yet stealthy mission to preserve it, using his deep lists of contacts gleaned during his time as the top US diplomat to try to apply pressure on the Trump administration from the outside. President Trump, who has consistently criticized the pact and campaigned in 2016 on scuttling it, faces a May 12 deadline to decide whether to continue abiding by its terms.

Kerry also met last month with German President Frank-Walter Steinmeier, and he’s been on the phone with top European Union official Federica Mogherini, according to the source, who spoke on the condition of anonymity to reveal the private meetings. Kerry has also met with French President Emmanuel Macron in both Paris and New York, conversing over the details of sanctions and regional nuclear threats in both French and English.

The rare moves by a former secretary of state highlight the stakes for Kerry personally, as well as for other Obama-era diplomats who are dismayed by what they see as Trump’s disruptive approach to diplomacy, and who view the Iran nuclear deal as a factor for stability in the Middle East and for global nuclear nonproliferation. The pact, which came after a marathon negotiating session in Vienna that involved Iran and six world powers, lifted sanctions in return for Iran stopping its pursuit of nuclear weapons.

“It is unusual for a former secretary of state to engage in foreign policy like this, as an actual diplomat and quasi-negotiator,” said Michael O’Hanlon, a foreign policy expert at the Brookings Institution. “Of course, former secretaries of state often remain quite engaged with foreign leaders, as they should, but it’s rarely so issue-specific, especially when they have just left office.”

Kerry declined to be interviewed for this story. The quiet lobbying campaign — by him and others — is being conducted below the radar because he and his allies believe a high-profile defense of the deal by prominent Democrats would only backfire and provoke Trump, making it more likely the president would pull the United States out of the deal.

“Part of the equation is if Ernie [Ernest Moniz, the former US energy secretary] or John made a bold statement, [Trump] is . . . crazy, and he might do the opposite just to spite them,” said one source who has worked with Kerry. “You’re liable to spur this guy in a direction you don’t want him to go in, just to be spiteful.”

Moniz was a key part of the negotiating team, meeting with his Iranian counterpart as they determined some of the technical scientific details.

A former Obama White House official said there is little to be gained by aiming the effort directly at Trump.

“At least from our network, you’re not going to find messages aimed at him directly,” said the official. “It would be counterproductive. Anything with our brand attached to it, he’ll run in the opposite direction.”

Democratic lawmakers in Congress also have been relatively quiet, and not all share Kerry’s belief that the deal is essential for preventing a nuclear arms race in the volatile region. Kerry has quietly tried to bolster support in Congress. In recent weeks he’s placed dozens of phone calls and, often with Moniz by his side, has lobbied members of Congress, including House Speaker Paul Ryan. While he is not negotiating as he did as secretary of state, he is attempting through quiet advocacy to preserve what he accomplished.

Kerry supporters see in this campaign some of his trademark traits, especially his unflagging energy even in the face of potential failure. Critics see something else, a former office holder working with foreign officials to potentially undermine the policy aims of a current administration.

The White House did not respond to a request for comment.

Under terms of the deal, the United States is supposed to waive sanctions, which come up for review every three or four months, as long as Iran remains in compliance. Trump is threatening to reimpose sanctions on Iran when the next deadline comes on May 12, which would essentially mean the United States is pulling out of the deal. Trump has ridiculed Kerry for a deal that he says is not harsh enough on Iran, saying that inspectors should have broader access, portions of the deal should never expire, and that Iran’s ballistic missile program should also be curtailed.

Israel Prime Minister Benjamin Netanyahu provided further ammunition for critics of the deal, unveiling documents that showed Iranian efforts to build its nuclear program before the 2015 deal was reached.

Kerry and others said the documents were nothing new, and illustrated the need for an inspections regime to make sure Iran is complying with the current agreement.

“Every detail PM Netanyahu presented yesterday was every reason the world came together to apply years of sanctions and negotiate the Iran nuclear agreement — because the threat was real and had to be stopped,” Kerry wrote on Twitter Tuesday. “It’s working!”

Kerry is coordinating his push with a group of officials who were his top advisers at the State Department, and who helped craft and negotiate the Iran deal in the first place. The group, called Diplomacy Works, has an advisory council that includes lead Iran-deal negotiator Wendy Sherman, former State Department chief of staff Jon Finer, and former spokeswoman Jen Psaki.

The group claims to be responsible for 100 news articles, 34 television and radio hits, and 37 opinion pieces on the Iran question. They do fact checks of criticisms of the agreement and blast them out to an e-mail list of nearly 4,000 policy makers and foreign policy experts.

But the group determined that the most influential voices would not be Democrats, and instead would focus on Europeans, Israelis, and nonpartisan experts to try and salvage the deal, according to a person involved in the effort. As a sign of the their success, Kerry has pointed to an April 25 letter signed by 26 former top-ranking Israeli military and security officials urging the United States to stay in the agreement.

“Our effort is self-aware,” said David Wade, a longtime Kerry adviser who was chief of staff at the State Department and is helping advise Diplomacy Works. “We are in uncharted waters. The bipartisan, traditional foreign policy community remains on the president’s enemies list from 2016. The president delights in dismissing anything accomplished under his predecessor, so we know traditional validators wouldn’t be compelling to him.”

“This isn’t President Obama’s agreement. It’s the world’s agreement,” he added. “Maybe Macron, Merkel, and Great Britain can persuade the administration, but if they can’t they’ll be even more essential to protecting the deal absent the United States. We know these voices are powerful. They have an audience with the president and our allies are popular at home.”

They are not ignoring the domestic audience.

Kerry and Moniz met in February with Ryan, who has been outspoken in his opposition to the Iran deal. Kerry also held a breakfast briefing last week with members of the House and Senate, which was designed to answer questions as well as underscore how, if Trump pulls out, Europe could hold the deal together.

Kerry’s activities could raise questions if they are perceived as a direct effort to counter current administration foreign policy.

The Trump administration got entangled with controversy when Michael Flynn, the incoming national security adviser, tried to undermine Obama policies in the administration’s last few weeks. His actions appeared to some legal experts to violate the Logan Act, an obscure 18th century law meant to crack down on private citizens acting on behalf of the United States during a dispute with foreign governments.

The Logan Act prohibits US citizens from having private correspondence with a foreign government “with intent to influence the measures or conduct of any foreign government . . . in relation to any disputes or controversies with the United States, or to defeat the measures of the United States.”

Stephen Vladeck, a law professor at the University of Texas, said the law is a red herring — since it’s never been used to prosecute anyone — and almost certainly would not apply to anything Kerry is doing.

“The act only applies to conduct that is designed to ‘defeat the measures of the United States’ or influence the conduct of foreign governments,” Vladeck said. “If all Kerry is doing is working to keep in place something that’s still technically a ‘measure of the United States,’ I don’t see how the statute would apply even if someone was crazy enough to try it.”

Most Democrats have remained fairly quiet about the Iran deal. Senate minority leader Chuck Schumer opposed the deal from the start, even though he’s not in favor of ripping it up now. Senator Robert Menendez, the top Democrat on the Senate Committee on Foreign Relations, has been consumed with his own troubles, having spent last year in a federal corruption trial that ended without a conviction. He was admonished last month by the Senate Ethics Committee for bringing “discredit upon the Senate.”

“No one has really led the charge. You could argue that’s what needs to be done by Obama, Kerry, Susan Rice, and the others who were involved,” said Daniel Kurtzer, who served as Bill Clinton’s ambassador to Egypt and George W. Bush’s ambassador to Israel. “But nobody knows how to deal with [Trump].”

The president doesn’t listen much to the voices of the foreign policy establishment. And they don’t really know how to reach him through conservative media.

“It’s a legitimate question to ask why is Obama not out front with the cognoscenti. But those aren’t the ones Trump cares about anyway,” Kurtzer said. “My guess is the phone has been ringing off the hook between European leaders and Obama. The Europeans are trying. They’re giving it their best shot.”

A spokeswoman for Obama declined to comment on whether the former president is doing anything to preserve the Iran deal.

Kurtzer said the most articulate public advocate for the pact right now is Moniz, although he said that the former energy secretary may not have the name recognition required to drive a national debate (Kurtzer himself initially could not correctly recall his name).

“He really knows his stuff,” he said. “He’s very calm . . . . The problem is, who knows who he is?”

Moniz declined several requests for an interview this week about his efforts.

Public support for the deal was initially low, with nearly 60 percent of those surveyed in August 2015 saying they were opposed, according to a survey from Morning Consult. Those numbers are now reversed, with 56 percent supporting it; the number opposed, 26 percent, is the lowest level since the group began polling on the Iran deal.

Democrats are strongly in favor, while Republicans are evenly split, according to the survey conducted from April 26 to May 1. Some on the left believe Trump has kept it alive for political reasons, to provide a convenient foil.

“It’s something that has been in Trump’s cross-hairs even before he was inaugurated,” said the former Obama administration official. “That we’re in May 2018 and still in ‘will-they-or-won’t-they’ speaks to the utility the administration has found in the Iran deal. Otherwise they would have been out of it on day one.

“A lot of us are somewhat skeptical,” the official added. “But we’ve been skeptical for the past 18 or 19 months now.”