Obama Admin Ok’d China Huge Investments in US, Security Threats

Posted on July 22, 2020July 22, 2020 by Denise Simon

In recent months, perhaps years, we have witnessed how China is a major threat to our national security. What we don’t know is the depth and width of that threat matrix but the Trump administration is for sure addressing the issues as fast as they can.

China says US orders it to close its consulate in Houston ... source

The theft by the Chinese Communist Party of intellectual property appears to have no limit and hence the cost cannot be determined either. Below are just a few items of interest that prove the points above.

(Reuters) – The U.S. Justice Department on Tuesday indicted two Chinese nationals over their role in what the agency called a decade-long cyber espionage campaign that targeted defense contractors, COVID researchers and hundreds of other victims worldwide. U.S. authorities said Li Xiaoyu and Dong Jiazhi stole terabytes of weapons designs, drug information, software source code, and personal data from targets that included dissidents and Chinese opposition figures. They were contractors for the Chinese government, rather than full-fledged spies, U.S. officials said. An unnamed “UK artificial intelligence and cancer research firm” was on the list of 25 victims released by the US Department of Justice
The United States ordered the Chinese government and diplomatic staff to shutter the Chinese consulate located in Houston and to leave the country in 72 hours. In a Tweet by Senator Marco Rubio:“# The Chinese Consulate in Houston is a massive spy center, forcing it to close is long overdue,” he said, describing it as a “central node” of the Chinese Communist Party’s spy operations. .“It had to happen,” he tweeted. (locals called the fire department to report a fire at that location, but upon arrival found they could not enter sovereign land and it was merely Chinese personnel burning documents) source
Chinese foreign ministry spokesperson Wang Wenbin said during a news conference Wednesday that “the unilateral closure of China’s consulate general in Houston within a short period of time is an unprecedented escalation of its recent actions against China.”

He warned of firm countermeasures if the U.S. does not reverse itself. Besides its embassy in Beijing, the U.S. has five consulates in mainland China, according to its website. They are in Shanghai, Guangzhou, Chengdu, Wuhan and Shenyang.
In 2015, Chinese company acquired a Texas oil fields in $1.3 billion deal where Yantai Xinchao acquire oil assets in the western Texas Permian Basin that are currently owned by Tall City Exploration and Plymouth Petroleum. The deal is part of a larger transaction between Yantai Xinchao and a second Chinese firm. The purchase, which includes oil fields in the state’s Howard and Borden counties, has already been approved by the U.S. Committee on Foreign Investment, the filing said.
China (CNOOC) has increasingly been looking to the Americas for raw materials it needs to sustain the boom. As private investment dwindled with the global financial crisis, the cash-flush Chinese went on a regional shopping spree. Noted in 2018: — Goldman Sachs (GS) said it would create a $5 billion fund with China Investment Corporation, the country’s sovereign wealth fund, to invest in US companies.
— Qualcomm (QCOM) signed $12 billion in non-binding deals to supply semiconductors to Chinese smartphone brands Xiaomi, Oppo and Vivo.
—Sinopec (SHI), China’s state-owned oil and gas company, said it would explore an investment of up to $43 billion in Alaska’s energy sector.
— China Energy Investment Corp., which is also state-owned, signed a non-binding agreement with the state of West Virginia to invest nearly $84 billion in shale gas and chemical manufacturing projects.
— Boeing (BA) announced that it would sell about $37 billion worth of planes to a government holding company that buys jets for state-owned carriers such as Air China and China Southern Airlines.
Perhaps worst of all is Nike and Apple. Why? Slave labor known as Uighars. Per the Australian Strategic Policy Institute in part:The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority¹ citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 83 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen.This report estimates that more than 80,000 Uyghurs were transferred out of Xinjiang to work in factories across China between 2017 and 2019, and some of them were sent directly from detention camps.² The estimated figure is conservative and the actual figure is likely to be far higher. In factories far away from home, they typically live in segregated dormitories,³ undergo organised Mandarin and ideological training outside working hours,⁴ are subject to constant surveillance, and are forbidden from participating in religious observances.⁵ Numerous sources, including government documents, show that transferred workers are assigned minders and have limited freedom of movement.⁶

(gotta wonder where former NFL quarterback Colin Kaepernick is now right?) –>Since 2017, more than a million Uyghurs and members of other Turkic Muslim minorities have disappeared into a vast network of ‘re-education camps’ in the far west region of Xinjiang,¹¹ in what some experts call a systematic, government-led program of cultural genocide.¹² Inside the camps, detainees are subjected to political indoctrination, forced to renounce their religion and culture and, in some instances, reportedly subjected to torture.¹³ In the name of combating ‘religious extremism’,¹⁴ Chinese authorities have been actively remoulding the Muslim population in the image of China’s Han ethnic majority.

The ‘re-education’ campaign appears to be entering a new phase, as government officials now claim that all ‘trainees’ have ‘graduated’.¹⁵ There is mounting evidence that many Uyghurs are now being forced to work in factories within Xinjiang.¹⁶ This report reveals that Chinese factories outside Xinjiang are also sourcing Uyghur workers under a revived, exploitative government-led labour transfer scheme.¹⁷ Some factories appear to be using Uyghur workers sent directly from ‘re-education camps’.

The Australian Strategic Policy Institute (ASPI) has identified 27 factories in nine Chinese provinces that are using Uyghur labour transferred from Xinjiang since 2017. Those factories claim to be part of the supply chain of 83 well-known global brands.¹⁸ Between 2017 and 2019, we estimate that at least 80,000 Uyghurs were transferred out of Xinjiang and assigned to factories through labour transfer programs under a central government policy known as ‘Xinjiang Aid’ (援疆).¹⁹

Do You Recognize Chinese Propaganda?

Posted on June 23, 2020June 23, 2020 by Denise Simon

Fake accounts, false news stories, bots and media paid by Chinese operatives. Sounds like Russia right? Same playbook, only perhaps more aggressive. As a public service, this article provides you as an internet user, a consumer of news and holding accounts on social media, be fair warned you could be vulnerable to Chinese propaganda.

(UPI) — The Trump administration on Monday designated four more major Chinese state-run media outlets as foreign missions for being propaganda mouthpieces of the Chinese Communist Party, a move that will likely worsen already strained relations between Washington and Beijing and attract retaliatory measures.

China Central Television, China News Service, the People’s Daily and the Global Times were all designated Monday as foreign missions as they are “substantially owned or effectively controlled” by the Chinese government, State Department spokeswoman Morgan Ortagus said in a statement.

The companies will have to report the names of their staff and their real estate holdings to the Office of Foreign Missions within the State Department, treating the companies as arms of the Chinese government in the United States like foreign embassies or consulates.

“The decision to designate these entities is not based on any content produced by these entities, nor does it place any restrictions on what the designated entities may publish in the United States,” she said. “It simply recognizes them for what they are.” More here.

In order to ensure greater transparency of CCP-run operations in the United States, I directed the designation of four additional PRC propaganda outlets as foreign missions.

— Secretary Pompeo (@SecPompeo) June 22, 2020

***

There is a backstory, a good one on how this came to be.

A radio station controlled by the Chinese Communist Party propaganda outlet Phoenix TV has been ordered by the Trump administration to cease its broadcasts within 48 hours.

source

The Federal Communications Commission ruled on Monday that a Mexico-based radio station owned in part by Phoenix TV—one of the Communist regime’s leading propaganda organs—must end its broadcasts due to its failure to disclose its ties to China.

Prior to the FCC’s ruling, the station was exploiting a loophole that allows content produced in the United States to be broadcast from foreign radio towers, such as those in Mexico. Phoenix TV, which is headquartered in California, produced its content domestically and then used the more powerful Mexican station to broadcast across the U.S. border.

The FCC denied a license for that radio station, XEWW-AM, because it “failed to include in their application a key participant, Phoenix Radio, which produces the Mandarin programming in its studio,” the agency disclosed. Phoenix Radio, Phoenix TV’s radio affiliate, was using the station to broadcast Chinese propaganda across Southern California, in violation of FCC statutes.

Phoenix TV first found itself in Congress’s crosshairs earlier this year, after one of its reporters confronted President Donald Trump during a White House briefing about the coronavirus pandemic and Chinese government efforts to cover up the illness. The station’s presence at the White House generated concerns about the proliferation of Chinese state-controlled press organs in the United States.

The Mexican radio station failed to disclose Phoenix TV’s “extensive role” in producing content, an FCC spokesperson told the Washington Free Beacon. “It was a violation of the Communications Act for that company, which has ties to the Chinese government, not to be included on the application filed with the Commission. Therefore, the application was deficient and was dismissed.”

Phoenix TV used Mexican radio towers to skirt U.S. laws barring the dissemination of foreign propaganda in America. The FCC’s ruling is a sign the Trump administration seeks to more aggressively police these types of outlets, which for years have operated with little oversight. Congress has moved in recent months to crack down on a range of Chinese broadcasters and social media accounts that help the Communist regime saturate the American marketplace with state-approved propaganda.

The Free Beacon first reported in April that Sen. Ted Cruz (R., Texas) was leading a charge to see the Mexican station shut down over its ties to Phoenix TV. Cruz introduced legislation exposing how Phoenix TV used a series of corporate cutouts to purchase the Mexican radio station and use its airwaves to broadcast Communist propaganda in the United States. The legislation would have closed loopholes in the FCC’s statutes that permitted Phoenix TV to operate in this manner.

“Today’s decision sends an important message to the world that the U.S. will not allow China to exploit FCC loopholes and spread its propaganda over our airwaves,” Cruz told the Free Beacon. “More importantly, this decision is a critical step in countering the Chinese Communist Party’s efforts to control what Americans see, hear, and ultimately think.”

The FCC ruling accuses XEWW-AM’s owners of trying to hide the station’s ties to Phoenix TV. The station’s license application, the FCC said, did not disclose Phoenix TV’s role in producing the station’s broadcasts. The license was rejected on this basis. While the station can resubmit its application at a later date, it is likely to be rejected due to mounting concerns about Phoenix TV’s distribution of Communist regime propaganda.

Cruz first raised concerns with the FCC in 2018, when the H&H Capital investment group purchased the Mexican station. H&H, Cruz said, is completely enmeshed in Phoenix TV’s operations. H&H is owned in large part by Vivian Huo, a U.S. citizen and Beijing native who formerly worked for several Chinese-run media outlets.

Dear General Mattis and the other Flag Officers

Posted on June 5, 2020June 5, 2020 by Denise Simon

General Mattis, your op-ed in the Atlantic was repugnant. Let’s review what you purposely overlooked, shall we?

photo

Know your Terrain

It’s the leader’s job to interpret and translate the terrain and operating environment. Know whether you are the bear or the alligator. Leaders must understand their organization’s strengths, weaknesses, and ideal operating terrain before stepping into the fight. There is no “unfair” when dealing with an uncontrollable variable like terrain. Read more here from Sun Tzu on terrain.

You see during the Covid-19 lockdown, America was in fear. The fear doubled and confidence has been shattered with rioting, death, arson and looting. General, you did not offer a solution. But we are learning all the dynamics of the changing terrain in America and it is ugly.

All Enemies Foreign and Domestic

Our rights as citizens are to be protected and the elite members of our Praetorian Guard are designated as politicians at all levels, law enforcement and the branches of the military. So to you Generals and Admirals, to the politicians and law enforcement, who is protecting selected voices from censorship? What about illegal searches and surveillance where we are to be secure in our person, papers and effects? What about our ability to fully protect ourselves from home invasions or burning a building or business where the upper floors are actually apartments? We have gangs operating all over the nation, we have subversive groups doing the same. We have an insurgency upon the country and they are domestic enemies to the general welfare of America. What is your solution if not law and order?

Ungoverned Spaces

You are well aware of places like Idlib, Syria, the Sahel, Libya, Donbass, Ukraine, even the South China Sea and the Strait of Hormuz. General, in America there are thousands of points of ungoverned spaces including public schools, streets in San Francisco, the courthouse steps in Portland, Oregon or the college campus at Berkeley. In recent days, ungoverned spaces included cities and streets across the nation where police are told to take a light touch all while mayors have released violent criminals from prison and what would be felony arrests are considered misdemeanors, letting go the criminal within hours with a mere $120 ticket. General, have you considered this chaos? Are you applying strategic thinking to frontier justice where decent Americans will be forced into vigilante justice? Syrians were forced into that just as Libyans are. We have to fend for ourselves, you omitted that part. So, to you Flag officers, have you a solution war plan to solve this in America?

Domestic Tranquility

While the intent of the Framers intended to quell uprisings and rebellions between states, domestic tranquility is fleeting. When civil society is challenged and criminal behavior goes unpunished, established justice is broken. Peaceful demonstrations are events where the demonstrators put forth their grievances. That is a wonderful and endorsed right. When riots, theft, looting, arson, shootings or otherwise physical harm comes to person or property, law and order is fractured. Placing the National Guard at designated locations is to augment law enforcement. If that fails, a higher more assertive remedy is called for including the consideration of the Insurrection Act. There is not a respectable American that wants conditions to reach that point and that includes President Trump. But just like military personnel in the realm of war-gaming operations, all consideration must be on the desk and they are. In the case of the civilian population, leaders and law enforcement too must consider all options for the protection of public safety.

So General Mattis, you are quoted as saying ‘ If you cannot create harmony, even vicious harmony on the battlefield based on trust across service lines, across service lines, across coalition and national lines and across civilian/military lines, you need to go home, because your leadership is obsolete‘.

That harmony you speak of is lost in America, we are divided. So, General sir…just go home, take the other Flag officers with you.

We are gonna be ‘polite and professional’ in spite of it all, but we are gonna be the guards of our own terrain, personally and professionally and politely.

Sanction China by Stopping World Bank Loans to CCP

Posted on May 28, 2020May 28, 2020 by Denise Simon

Decoupling the United States from China is a convoluted and complicated process. Some lawmakers make it sound easy by just terminating manufacturing agreements by U.S. companies and bring it stateside. Ah but hold on…it is important to know some other details that lawmakers on both sides of the aisle are not telling you.

Consider the items below:

1. Commerce Department official warned Congress recently that China is raising billions of dollars in U.S. capital markets and the activity could undermine American security.

Nazak Nikakhtar, assistant secretary for international trade at the Commerce Department, testified last month that Chinese companies raised $48 billion from American capital markets from 2013 through the end of last year.

Ms. Nikakhtar told the congressional U.S.-China Economic and Security Review Commission that 172 Chinese companies in September were listed on the three largest U.S. exchanges — Nasdaq, the New York Stock Exchange and the NYSE American — with a total market capitalization of more than $1 trillion. More here.

Confucius Institutes and U.S. Exchange Programs: Public ...

2. Charles Lieber, the chair of Harvard University’s Department of Chemistry and Chemical Biology, and two Chinese nationals who were researchers at Boston University and a Boston hospital were charged by the U.S. Justice Department with lying about their purported links to the Chinese government. But hold on, it is much worse. China has a real impact on all levels of the U.S. education system. The Senate Permanent Subcommittee on Investigations issued a 96 page report describing the Confucius Institute and how those agreements work with domestic universities. Further, major universities failed to report the other monies they receive from China among other countries. It is shocking how foreign money has infiltrated the U.S. education system and to learn which country does what and how much, click here.

China moon landing: Spacecraft makes first landing on moon ...

3. China launched its Long March 5B rocket into space. This is an effort by China to build a modular space station. It did however fall out of orbit falling for the most part into the Atlantic Ocean off the coast of Africa near the Ivory Coast. Additionally, as China continues to launch at least 12 more space operations it already has landed on the dark side of the moon. China and Russia are in fact collaborating on lunar operations including for shared bases. Russia’s operations coordinating with China are centered and funded by Roscosmos for Space Activities and the Skulkovo Foundation. This is the foundation where Hillary Clinton created U.S. technology (Silicon Valley) and Skulkovo via the Clinton Foundation via a major donor known as Viktor Vekselberg. This is the other scandal of technology transfer(s) to rogue nations.

4. We are already somewhat versed in Chinese complicity in the pandemic and the World Health Organization but lets go to the World Bank shall we? As of early 2019, China was sitting on cash reserves of some $3 trillion. It is the world’s second-largest economy, behind the U.S. It directly lends more money to other nations each year than the $2 billion or so it borrows from the World Bank annually. The World Bank, based in Washington, D.C., was established after World War II to help European countries rebuild. Its mission has evolved over the years and is now to finance development in low- and middle-income countries with the goal of eliminating extreme poverty.

“From a pure economic vantage point, there is no good reason for the World Bank to continue making loans to China,” says Eswar Prasad, a professor of economics at Cornell University.

“The Chinese don’t need the money,” Prasad says. “There is a glaring optics problem.” He adds that the argument could be made that the money lent to China could be put to better use elsewhere.

And it’s not as if the World Bank has an infinite amount of money to parcel out. Its lending budget, drawn from reserves, donations and the interest it earns on capital, is limited. So a dollar lent to China is a dollar that is not available for a project somewhere else in the world. The Trump administration, which regularly beats up on China, accusing it of manipulating global trade rules for its own benefit, has blasted the World Bank for lending too much to China.

Prasad says the World Bank’s lending to China is becoming “untenable” and will have to stop fairly soon.

Bert Hofman, the World Bank’s country director for China, says the amount of money China is borrowing each year from the global bank is just a small fraction of what the country is investing each year in domestic programs. And he believes that a motivation for China’s borrowing goes beyond money.

“The reason they still borrow is because they feel that the expertise of the World Bank is valuable to them,” Hofman says.

World Bank loans come with advisers and auditors who help implement (and monitor) bank-funded projects.

China gets access to international experts. The World Bank remains engaged with China and is able to see how new projects play out in this booming middle-income country. Hofman sees it as a win-win.

Prasad agrees that there are still some good reasons for the World Bank to remain engaged with China. Many of the bank’s loans to China are for projects addressing climate change and mitigating pollution from the country’s booming factories.

“The risk the World Bank faces is that if it only lends to very poor countries, it might end up not having much of a role to play in the large, fast-growing emerging-market economies,” Prasad says. “So the World Bank, in a bid to remain relevant and push its agenda on issues such as climate change and social development, has continued to lend to China.” More here.

***

The World Bank said its board adopted a new plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of U.S. Treasury Secretary Steven Mnuchin and several U.S. lawmakers.

World Bank approves $300mn for agriculture reforms in ...

Mnuchin told a House Financial Services Committee hearing that the Treasury’s representative on the board had objected on to the plan on Wednesday, adding he wants the World Bank to “graduate” China from its concessional loan programs for low- and middle-income countries.

The five-year lending strategy plan was published on Thursday afternoon after the World Bank’s board “expressed broad support” for the multilateral development lender’s engagement in China’s structural and environmental reforms.

The World Bank said its lending would decline over the “country partnership framework” plan, in line with reformsagreed under a $13 billion capital increase agreed in 2018.

The World Bank loaned China $1.3 billion in the fiscal 2019 year ended June 30, down from about $2.4 billion during fiscal 2017. The new plan calls for lending to “gradually decline” from the previous five-year average of $1.8 billion.

“Lending levels may fluctuate up and down from year to year due to normal pipeline management based on project readiness,” the World Bank said in its plan.

*** So we have a collection of reparation options due to the pandemic when it comes to China, we have a building space battlefield, we have corruption within China and now we have the U.S. at major odds with the Chinese Communist Party’s in violation of the One Country, Two Systems Act of 1997 with regard to Hong Kong. Secretary of State Pompeo declared to Congress that Hong Kong was no longer autonomous with The CCP which is correct but this will spark continued hostilities between the two nations even as naval conflicts continue in the South China Sea.

None of this will be easy but the reader should know more details to assess what may be ahead in global relations.

Legislation to Regain US Control of Critical Minerals from China

Posted on May 21, 2020May 21, 2020 by Denise Simon

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), member of the Senate Foreign Relations Committee, today introduced the Onshoring Rare Earths Act of 2020 or ORE Act, legislation to end U.S. dependence on China for rare earth elements and other critical minerals used to manufacture our defense technologies and high tech products by establishing a supply chain for these minerals in the U.S., including by requiring the U.S. Department of Defense (DOD) to source these minerals domestically.

Upon introducing the legislation, Sen. Cruz said:

“Our ability as a nation to manufacture defense technologies and support our military is dangerously dependent on our ability to access rare earth elements and critical minerals mined, refined, and manufactured almost exclusively in China. Much like the Chinese Communist Party has threatened to cut off the U.S. from life-saving medicines made in China, the Chinese Communist Party could also cut off our access to these materials, significantly threatening U.S. national security. The ORE Act will help ensure China never has that opportunity by establishing a rare earth elements and critical minerals supply chain in the U.S.”

*** Rare earth mineral deal inked by US and Australia — what ... photo

Noted by Forbes:

A whole slate of new bad behaviors by China’s repressive regime have been laid bare by the COVID-19 crisis. There were already plenty of complaints before the pandemic began, but the coronavirus seems to be supercharging the pressure on U.S. companies to reduce their Chinese sourcing. One of the biggest recent challenges in that regard has been China’s dominance in mining and processing critical rare earth minerals. These are vital building blocks for everything from smart phones, EV batteries and medical imaging machines to advanced defense weaponry, so our reliance on a less-than-friendly nation for our supply presents a huge political and economic risk. But right now China controls 90% of global rare earth production.

It’s amazing good fortune, then, that out in the barren scrub of Far West Texas 85 miles east of El Paso, an unassuming 1,250-tall mountain called Round Top holds the promise of making America largely self-sufficient in these critical minerals. The mountain contains five out of six light rare earths (such as neodymium), 10 out of 11 heavy rare earths (dysprosium, for example), and all five permanent magnet materials. What’s more, Round Top has large deposits of lithium, critical for batteries in EVs and power storage. More here.

See the U.S map here.

The global map is here.

According to the United States Geological Survey, as of 2018, China produced around 80% of world demand for rare earth metals (down from 95% in 2010). Their ores are rich in yttrium, lanthanum, and neodymium.

Since August of 2010, fears over Chinese dominance of crucial rare earth supplies have lingered as China restricted export quotas of the metals with no official explanation, immediately sparking debate over decentralization of world rare earth production.

Rare earth element mines, deposits, and occurrences photo

Great quantities of rare earth ores were found in California in 1949, and more are being sought throughout North America, but current mining is not significant enough to strategically control any portion of the global rare earths market (the Mountain Pass mine in California still has to ship its minerals to China to be processed).

Rare earths are traded on the NYSE in the form of exchange-traded funds (ETFs) that represent a basket of supplier and mining stocks, as opposed to trading in the metals themselves. This is due to their rarity and price, as well as their almost strictly industrial consumption. Rare earth metals are not considered a good physical investment like precious metals, which hold low-tech intrinsic value.

*** How did this happen?

In part:

Economically, the biggest changes happened in the 1990s and early 2000s, starting when the United States conferred permanent “Most Favored Nation” status on China.

These decisions proved disastrous.

“Prior to that, we could only give China [Most Favored Nation status] one year at a time because we had a law that said you can’t give a communist country permanent [Most Favored Nation] trade treatment,” said Mulloy. “Each year, if China wasn’t behaving properly, we could take it away.”

“It was a terrible mistake to give it up because we were unable to manage or govern the Chinese after that,” agreed Halper.

The next shoe to drop came with China’s inclusion in the World Trade Organization.

The U.S. only approved China’s entry on the condition that we could continue to punish what we considered unfair trade practices by China or anyone else. But when that position was challenged within the World Trade Organization, we agreed not to penalize anyone unless we won a dispute at the World Trade Organization.

We handcuffed ourselves and we’ve been handcuffed ever since. What was once an $80 billion trade deficit is now at $4.5 trillion. It should have been foreseeable, but Wall Street and multinational corporations, which foresaw big returns from China, lobbied Congress hard to get these things approved.