From movie theaters and studios to Home appliances and technology companies, the Chinese Communist Party has been trying to annex large mainstream U.S. companies in various fields. U.S. hawks say this move by the Chinese Communist Party poses a national security risk to the United States, and that this trend of acquisitions and infiltration by Chinese companies must be curbed.
The Chinese Communist Party is trying to overtake the U.S. in the fields of technology and economics, while exerting influence on U.S. politics. As a result the Chinese communist state has increased its penetration in the United States over the years through investments, mergers and acquisitions in a range of industries, including Food, technology and media.
Experts say that the Chinese Communist Party has infiltrated the U.S. technology sector for its “Made in China 2025” program, and that it is like a database that wants to absorb as much data and information as possible in order to control society.
Zhang Jiadun: Chinese Communist Party Wants to Control U.S. Companies
Newsmax reports that Giuseirino Phil, a professor of political science and business law at Case Western Reserve University and director of the Frederick K. Cox Center for International Law, said the Chinese Communist Party wants to control U.S. companies. Juscelino Filgueiras Colares said the Chinese Communist Party wants U.S. multinational corporations to play a role in the decline of the United States and the Communist Party’s global domination by venerating American companies and preferring American recognition.
These mainstream U.S. companies have large economic interests in mainland China, including AMC, the largest U.S. theater chain, movie studio Legendary Entertainment Group, GE Appliances, Motorola Mobility and others.
Gordon G. Chang, a China expert, said the Chinese Communist Party wants to control U.S. companies in order to achieve its technological dominance, as well as to turn those companies against the United States, which has sought to destroy the U.S. political system and economic prosperity.
“When the Chinese Communist Party owns a company, it has influence over the direction of the company and its employees.” He said, “We have to pay attention to that and it’s Time to break that CCP way of influence.”
Will Coggin, president of the American Security Institute, said the U.S. needs to pay attention to what acquisitions the CCP and its proxies are making and which ones could potentially be used against the U.S. and help the CCP achieve its global hegemonic aims.
“They [the Chinese Communist Party] want to take down the United States.” He said, “They will make corporate acquisitions for their own benefit that will eventually come against us.”
Significant deals involving the Chinese have been documented in at least 40 U.S. states
MacroPolo, an in-house think tank at the Paulson Institute in Chicago, researches and tracks the activities of the Chinese Communist Party within the United States. According to its research, direct Chinese Communist Party investment in the United States reached $46.5 billion in 2016 before declining due to U.S. government pressure and regulation; in 2018, Chinese venture capital investment in the United States reached $4.7 billion. Investment areas include mobile technology, software, Life sciences, artificial intelligence, data and other technology initiatives.
Communist financial interests have purchased more than $120 billion in assets in the United States since 2002, according to the nonprofit consumer advocacy group Public Citizen. Nearly 60 percent of the acquisitions have been made by 15 Chinese entities, either state-owned enterprises backed by state funds or private companies with close ties to the government. At least 40 states have documented significant transactions involving the Chinese, according to their database records.
Not only is the Chinese Communist Party very interested in the technology industry and ignoring intellectual property protection laws to facilitate the development of its own products, it is also seeking access to the personal information and data of Americans. “They (the CCP) want to get their hands on the personal and private data of everyone in this country.” Coggin said, “(The CCP) is like a database that wants to absorb as much data and information as possible, and it’s all about controlling society.”
Corrales said the CCP’s investments in innovation are dangerous because the emerging technologies that are emerging are being stolen and sent back to mainland China. “They (the CCP) are constantly collecting all kinds of data within the United States.” He said, “Science and technology plus the information that is collected is a very worrisome combination.”
Chinese Communist Party investments in the U.S. involve food, real estate and gaming in addition to high-tech
Yet Chinese companies are not limiting their investments to high technology; they have put money into food, real estate and gaming. Experts say Americans may not know that Smithfield Foods, the iconic American brand known for its hams, is actually owned by a Chinese company, as is Riot Games, the company known for creating the popular video game “League of Legends. So much so that Chinese holding company Tencent bought 93 percent of the company in 2011 for $400 million; in 2015, it owned 100 percent of the company, CNBC reported.
Chinese companies also have their fingers in the U.S. hotel industry. China’s Anbang Insurance Group bought the famed Waldorf Astoria hotel in Manhattan for nearly $2 billion in 2014, and it later acquired Strategic Hotels & Resorts from Blackstone Group. The $6.5 billion deal gave Anbang 16 properties with 7,532 rooms, meeting space and banquet space, including the Ritz-Carlton in California, the Fairmont Scottsdale in Arizona and the Four Seasons Resort in Jackson Hole, Wyoming. Four Seasons Resort in Jackson Hole, Wyoming.
Coggin said the Chinese Communist Party is targeting industries that fit into its “Made in China 2025” plan, which aims to strengthen China’s position in 10 industries such as robotics, aerospace, information technology and other high-tech sectors.
China’s acquisitions are strategic and the U.S. must be concerned about the extent of Communist penetration
While not every Chinese investment poses a direct threat to national security, Coggin said investments made in certain industries raise red flags. “There are also many threats to our country as a whole and to the privacy of Americans’ own personal data,” he said, adding that “the purpose of such acquisitions can be very nefarious.”
While buying luxury hotels, for example, may seem like a “smart” investment, Coggin said these acquisitions may be more strategic. He said the Chinese Communist Party may target properties that attract VIPs such as politicians and corporate executives so they can spy on them covertly. Investments in the entertainment industry, such as Hollywood, allow the CCP to control how the country is portrayed in movies.
Kirkin said films exposing the CCP’s human rights abuses against Uighur Muslims will not appear on any big screen.
“The Chinese Communist regime has a history of human rights abuses, espionage and intellectual property theft,” he said. He added that the U.S. must take a hard look at what the CCP is buying and for what purpose.
Of course, not every U.S. company is up for sale, but that hasn’t stopped Chinese companies from making significant investments to get a seat on the board. in 2019, China’s Tencent invested $150 million in the very popular online social networking platform Reddit and bought a 10 percent stake in Universal Music Group, which owns the rights to top music artists, for $3.4 billion. Tencent also owns a 40 percent stake in Epic Games, developer of one of the most popular video games, “Fortnite” (also known as “Fortress Heroes”).
Corrales said the U.S. must be concerned about the extent of the Chinese Communist Party’s penetration in the U.S. business market.
The U.S. began to cancel many of its economic and financial ties with China during the Trump administration because of its stern stance on the CCP, Zhang said. Under the Biden administration, Mr. Zhang is not very confident that the administration will continue to complete the decoupling. While he does not believe the U.S. has reached a point where it is finished if it does not turn back, he said the U.S. needs to take a tougher stance to stop these deals from happening.
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