America's Greedy Welcome Chinese Communist Party and Their Money

[Michael K.]

http://www.thenewamerican.com/economy/commentary-mainmenu-43/7443-china-the-new-investment-savior

China: The New Investment Savior?

Written by William F. Jasper  
Thursday, 12 May 2011 00:00

The Idaho Statesman in a June 6, 2010 story extolled the efforts of Idaho's Commerce Secretary Don Dietrich and Idaho Governor C.L. "Butch" Otter to lure Chinese investors to their state: "'The Chinese are looking for a beachhead in the United States,' said Idaho Commerce Secretary Don Dietrich. Idaho is ready to give them one," the Statesman reported.

Is Idaho really ready to give the Peoples Republic of China a "beachhead" in the Gem State? Secretary Dietrich's happy use of a military metaphor to describe China's aspirations vis-à-vis the United States is odd, to say the least; some might even consider it alarming, though the Statesman, apparently, saw no reason to question his choice of words.

Merriam-Webster.com defines "beachhead" as "an area on a hostile shore occupied to secure further landing of troops and supplies."

Dictionary.com provides a similar definition: "the area that is the first objective of a military force landing on an enemy shore."

As Idaho's chief promoter of commerce, Dietrich surely could not have intended to convey a willingness to provide a hostile foreign power with an invitation for a military invasion. His poor choice of words, however, is in a sense apropos, even if unintentionally so. It should be noted (since our journalists, pundits, and politicians seem largely oblivious to the fact) that in China's state-monopoly system of Leninist "capitalism," its corporations are instruments of national policy, fully integrated with, and subservient to, the Communist Party of China (CPC) and the Peoples Liberation Army (PLA). As such, China's corporations do indeed serve as forward troops in Beijing's global strategic economic warfare...

Idaho is also negotiating major projects with the China National Machinery Industry Corp., known as Sinomach. "Sino-mach," says Boise's major newspaper, the Idaho Statesman, "is China's third-largest contractor, with more than $14 billion in sales last year. It has been active in more than 130 countries in Asia, Africa, Latin America, Russia and Eastern Europe as general contractor for large infrastructure and building projects."

Sinomach is bidding to win a contract for engineering, procurement, and construction for a $2 billion fertilizer plant for Southeast Idaho Energy, which is projected to provide 700 to 1,000 jobs during construction and 150 permanent jobs after completion. A factor in Sino-mach's favor is its access to financing from China's government banks.

Another project under negotiation with Sinomach is a massive 30,000-acre (a bit shy of 50 square miles) manufacturing, trade, and technology zone near the Boise airport.

What the Statesman article does not tell its readers is that Sinomach is not your typical private enterprise, as corporations are generally understood to be in the Western sense, but instead a commercial-political-military-intelligence instrument of the communist regime in Beijing.

Sinomach's website makes this interesting admission:

With approval of the State Council, China National Machinery Industry Corporation (SINOMACH) was established in January 1997. SINO-MACH is a large scale, state-owned enterprise group under the supervision of the State Assets Supervision and Administration Commission.

Unpacking those two sentences above reveals a great deal about Sinomach that rarely receives mention in glowing media reports and testimonials that read like press releases from the company's public relations department. It tells us that Sinomach was created with approval from China's State Council, which is the supreme administrative arm of the Politburo of the Communist Party of China (CPC), which rules China as a one-party dictatorship. The State Council is presided over by China's Premier, who, since 2003, happens to be Wen Jiabao (at the time Sino-mach was formed, Li Peng was Premier).

Sinomach's company website also includes a flow chart that provides important admissions about the corporation's organizational structure. In addition to SASAC presiding at the top of the corporate pyramid, we see that the "Secretary of the CPC Party Committee," the "Deputy Secretary of the CPC Party Committee," and the "Deputy Secretary of the CPC Party Committee/Secretary of Discipline Inspection Committee" serve in the top echelon of the company's management with the board of directors and executive officers.

Sinomach, as previously mentioned, is one of the Chinese state-owned enterprises — along with PetroChina and CNPC — that has been an important enabler for the genocidal practices of the al-Bashir regime in Sudan. And China does not merely provide capital and expertise for Sudan's oil fields; it actually deploys several thousand PLA troops to guard its corporate oil and pipeline facilities, Chinese prison labor for construction, and, most importantly, the weapons Sudan's troops and its notorious Janjaweed militias use to terrorize and slaughter their victims.

A little closer to home, Canada provides additional object lessons in the serious dangers associated with China's aggressive investment strategy. As far back as 1997, an extensive joint report by the Royal Canadian Mounted Police (RCMP) and the Canadian Security and Intelligence Service (CSIS) warned that "over 200 Canadian companies are under the direct or indirect control of China," as the result of a combined effort by the Chinese Intelligence Services and the triads, or Chinese mafia.

The RCMP/CSIS report, entitled "Sidewinder: Chinese Intelligence Services and Triads Financial Links in Canada," notes that "the Chinese government is trying to gain influence on Canadian politics by maximizing their presence over some of the country's economic levers. To that end, they proceed initially to buy and/or legally set up a company in Canada that, once under their control, buys other companies and so on. An effective domino effect ensues that acts like a well-spun web or network at strategic points.... These businesses are found in various sectors of the economy, ranging from multinationals to banking, high technology and real estate (CITIC, Norinco, Husky Oil, Grand Adex Properties Inc, Merrill Lynch, Gordon Capital, Inc, Tai Foong International, CIBC, Ramada Hotels, China Vision and Semi-Tech Corporation, etc.)."

In 2005, former CSIS official Michel Juneau-Katsuya stated that an estimated 1,000 Chinese spies had infiltrated the country and cost Canada $1 billion every month through industrial espionage. But the danger goes well beyond the economic and technological losses. In testimony to Parliament in 2007, CSIS Director Jim Judd noted that in addition to espionage, the Chinese agents/investors were attempting to interfere in Canadian politics and were intimidating Chinese Canadians who spoke out against China's repressive policies. In January of this year, CSIS Director Richard Fadden warned, in a confidential report that later leaked to the press, that "clandestine efforts by foreign governments to influence our officials, policies, and communities have the potential to undermine our ability to make independent decisions in Canada's national interests." Although the heavily redacted report does not mention China by name, it is largely understood that it is the primary concern of the CSIS. According to Fadden, provincial, municipal, and federal officials and public servants had already come under foreign influence and may be "subject to threats, coercion, or blackmail." "It is a slow and methodical development of relationships that aim to affect the perspective and decision-making of those being influenced," the CSIS director writes...

China's SEZ Zones Coming to America
With some people, however, delusion and denial know no bounds; prepare yourselves for the new PR offensive promoting the need for American communities and industry to adopt China's SEZ model of mass production. Under the subtitle "An unusual idea that may become common," the previously mentioned Idaho Statesman article suggested that Sinomach is interested in establishing American industrial-residential parks modeled after China's huge Special Enterprise Zone (SEZ) program. The Statesman reports:

Sinomach is not looking only at Idaho.

The company sent delegations to Ohio, Michigan and Pennsylvania this year to talk about setting up research and development bases and industrial parks. It has an interest in electric transmission projects and alternative energy as well.

The technology zone proposal follows a model of science, technology and industrial parks in China — often fully contained cities with all services included.

According to Beijing Review, China's major English-language magazine, "The Chinese Government has set up four special economic zones. They are located in the cities of Shenzhen, Zhuhai and Shantou of Guangdong Province and the city of Xiamen of Fujian Province." Shenzhen, the largest and most famous SEZ, has mushroomed in 30 years from a small fishing village to a megalopolis of 14 million people.

Is this what our political and business leaders have in mind for American communities? Is the centrally planned-and-controlled Chinese SEZ the future of America? Many of the Americans who have taken the guided Potemkin tours of Shenzhen or other parts of China seem to have been completely taken in by the attractive surface appearance of prosperity, efficiency, and progress. It is not uncommon to see American Mayors, Governors, and business executives returning from China to give television and newspaper testimonials to the glorious transformations being wrought by "capitalism" and "free enterprise" in the People's Republic.
 

Secretary Clinton shakes hands with the Chinese foreign minister after the memorandum of understanding signing, 1/19/2011
Photo Source: U.S. Dept. of State



http://oksafe.wordpress.com/2011/06/07/sleeping-with-the-enemy-u-s-governors-to-pair-up-with-chinese-officials/

Sleeping with the Enemy – U.S. Governors to Pair Up with Chinese Officials

OK-SAFE 6/6/11 – U.S. Governors will be saying more than "Ni hau" (Hello)  to Chinese party officials at an upcoming National Governors Association (NGA) meeting.

The U.S. – China Governors Forum, scheduled for July 15-17, 2011 in Salt Lake City, Utah, is set to include one-on-one pairing of U.S. Governors with Chinese provincial party secretaries and Governors.  The pairings, called "peer-to-peer exchanges," aim to "strengthen bilateral cooperation." Topics are to include items of "mutual interest,"  i. e. "job creation, education, health and economic cooperation."

A second session will take place in China in late 2011 or early 2012.

This forum is the result of a Memorandum of Understanding concerning the establishment of the U.S.-China Governors Forum to Promote Sub-National Cooperation, signed by Sen. of State Hillary Clinton on January 19, 2011.

The Governors Forum will be held behind close doors.

[See researcher Vicky Davis'  excellent article on this meeting, entitled "Quislings to Collaborate with Communist Chinese."]

The collaboration is indicative of the deepening U.S. involvement with the Chinese government, particularly at the sub-national (state and local) level.

Increased Agreements

At the Third Round of the U.S.-China Strategic and Economic Dialogue held in May 2011 the U.S. and China agreed to 48 strategic outcomes, including "further cooperation between U.S. and Chinese enterprises and institutions on healthcare, disaster response, and smart grids."

The Rhodium Group, (RHG) has a China Investment Monitor map, indicating that between 2003-2010 there were 230 deals between states and China, totaling $11.7 Billion in "greenfield and acquisition" investments. This includes Oklahoma.

Oklahoma

According to The Rhodium Group investment map, Oklahoma  has one  Chinese investment so far, totaling $4 million in "consumer products".

Governor Mary Fallin, a member of the NGA's Economic Development and Commerce Committee, will most likely be promoting more Chinese investment in Oklahoma.

From this committee's May 2011 briefing:

"Attracting Foreign Direct Investment into the States
On May 17, 2011, the NGA Economic Development and Commerce Committee hosted a briefing for governors' staff about the role of foreign direct investment from the perspective of U.S. subsidiaries of foreign parent companies. Topics discussed included how to recruit investment, tax challenges, conflict-of-laws and the importance of physical infrastructure to global competitiveness. Panelists: Tom Langan, director of U.S. government relations and public affairs, Unilever (NGA Corporate Fellow); Nancy McLernon, president and CEO, Organization for International Investment (OFII); and, John Lettieri, senior director of public policy and government affairs, OFII. Audio link (mp3)"

Oklahoma's Dept. of Commerce promotes Foreign Direct Investment in Oklahoma.

Oklahoma's universities have been busy developing Chinese partnerships, including OU's Confucius Institute, which aims to "foster a permanent place for the teaching and study of Chinese in Oklahoma K-12 schools courses."

Where's the Document?

According to the Chinese Embassy in the U.S website, describing President Hu Jintao's U.S. visit:

"During Hu's January visit, the two governments signed a memorandum of understanding commissioning the CPAFFC and the NGA to create the governors forum mechanism.

According to the document, the forum will serve as an important communication platform aimed at promoting practical cooperation at the sub-national level in areas such as trade, investment, energy, environment and culture"

No amount of searching of the State Department, White House, and Chinese embassy websites has revealed the actual Memorandum of Understanding document.

A FOIA request for a copy of the MOU has been submitted to the State Dept.'s Office of Global Intergovernmental Affairs.


The 2011 NGA Winter Meeting , held in Washington D.C. featured Zhou Qiang, Party Secretary, Hunan Provincial Committee, pictured above.  Zhou encouraged increased sub-national cooperation. Photo Source: National Governors Association.

What are the intentions of the Fallin administration regarding expanding Chinese involvement in Oklahoma?

Does Gov. Fallin intend to partner with a Chinese party official at the July meeting in Salt Lake City and seek increased "sub-national cooperation"?

Does Fallin intend to encourage Chinese foreign direct investment in Oklahoma or seek public-private partnerships with the Chinese in developing Oklahoma's infrastructure?

These and other questions need to be answered by this "conservative" governor.

http://www.channelingreality.com/China/quislings_to_collaborate.htm

Quislings to Collaborate with COMMUNIST Chinese

Governor Bob McDonnell of Virginia and Mark Brezezinski (Zbig's son) were the guests. The subject was Gov. McDonnell's activities to bring COMMUNIST Chinese money to his state. Mark Brezezinski was on the National Security Council during the Clinton Administration and is now a Trade Lawyer for a Virginia law firm named Maguire, Woods.

When the subject of the National Governor's Association meeting in Salt Lake City this summer came up, they mentioned that all of China's regional governors (COMMUNISTS) would be attending and they would be matched up with American governors - one on one for deal making - investing in our states.