American Spectator American Spectator

...All but four of the bonds, worth $42o million, have been issued since Bill Clinton became president...

...When told that Northrup Grumman had identified him as the purchaser, he fumbled: "I don't know who put my signature there...

...and China are indeed on a collision course, that collision could occur right on our shores...

...bond market because it's simply the most accessible and liquid market in the world...

...In April 1995, for instance, COSCO ships took containers loaded with "scrap silicon steel sheets," "scrap steel secondary grain silicon," and "silicon tetrachloride...

...In addition, "the speed of the computer operations on board will be increased so as to further improve strike accuracy," undoubtedly using microprocessors made in China with American manufacturing equipment sold without a license, because the Commerce Department has deregulated their sale...

...The company's Cleveland, Ohio subsidiary, Yuchai America, exists solely to purchase sensitive dual-use technology in the United States...

...In the end, CATIC's bid was too low and the plant was auctioned off piece by piece to the highest bidder...

...Donald Beall, president of Rockwell International, was in Peking the same day that Bryen and Reinsch were testifying on Capitol Hill, to announce new projects with the Chinese government 'We see China as a driver in our plan to double the size of our business in Asia Pacific," Beall told reporters...

...There is a tremendous public consciousness on the part of large institutional bond-holders," Robinson says...

...A country that gets supercomputers can develop nuclear weapons covertly, and have plausible deniabilThe American Spectator June 1997 ity if challenged," Bryen told the House National Security subcommittee...

...Undersecretary of Commerce for Export Administration, William Reinsch, stupefied a House National Security subcommittee on April 15 when he acknowledged that forty-six supercomputers have been shipped to China over the past fifteen months, and that the Commerce Department had no idea where the computers had gone because the licensing requirements had been eliminated...

...On April 6, London's Sunday Times revealed that a Hong Kong company jointly owned by arms maker Norinco and Hong Kong investor T.T...

...Chung also set up a meeting with Energy Secretary Hazel O'Leary for the head of China's state-run petrochemical company, Sheng Huaren, in October 1995...

...Through China Resources Development Inc., registered in Salt Lake City, Utah, the company raised funds from Wall Street in 1996 —and SEC documents obtained 37 by TAS show it has used that capital to expand state-owned enterprises back in China...

...He has found 36 Chinese-government bond issues in the U.S...

...So far the President of the United States has accepted campaign contributions from mainland Chinese donors, sponsored questionable investments for them in the United States, approved the sale of sophisticated technology to the Chinese military, failed to enforce U.S...

...But little or no demilitarization (Continued on page 78) 41 ments as scrap...

...Profits from the venture are distributed to directors through a holding company in the British Virgin Islands known as Billion Luck Company Ltd...

...There is a tremendous public consciousness on the part of large institutional bond-holders," Robinson says...

...We're still checking...

...CATIC's purchase of thirty-one sophisticated machine-tools from a former B-1 bomber plant in Columbus, Ohio, in 1994 led to a grand jury investigation that continues to this day...

...MAMIE FOR HIGH-TECH China's thirst for U.S...

...Basically, they are buying the machines locally and using U.S...

...Billions of dollars of taxpayer money went into creating these factories, and it's being given away for literally pennies on the dollar...

...The missile skins were made of a specially treated lightweight alloy that is extremely difficult to manufacture, Bryen said...

...EK Chor Motorcycle Corporation is another publicly-traded company on the NYSE...

...Blum heads the Newbridge Capital Corp., whose managing director, Peter Kwok, also serves as a consultant to a COSCO subsidiary, COSCO Hong Kong Holdings, Ltd...

...Despite feeble protests by the Commerce Department (which has never punished CATIC), the machines are still in China...

...China Xinxing also has a bonded warehouse near the Long Beach, California naval station...

...All have been registered with the United States Patent and Trademark office by Norinco affiliates...

...The probable costs of such a policy are easily enough understood...

...The Chinese are now buying up entire factories, lock-stock-and-barrel," says one agent...

...officials by pressing the Chinese to move the machines back to a civilian plant...

...Do they want to be financing the delivery of AK-47 assault rifles to L.A...

...But Chung is obviously no ordinary middleman...

...Of particular interest to the Chinese recently have been microprocessor plants that have been retooled or closed down as production is moved offshore...

...In January 1996, the couple had the privilege of dining in Mao Tse-tung's former residence in the Forbidden City, becoming the first foreigners allowed to see Mao's bedroom and his swimming pool...

...defense plants that have been closed because of downsizing, searching for used production equipment and even entire factories that it can then ship to China...

...The union also contends that many U.S...

...To demonstrate her good faith, Feinstein said, she was returning $12,000 contributed to her campaign from John Huang and other donors tied to the Lippo Group...

...38 June 1997 • The American Spectator Until 1994, Norinco legally imported "sporting" rifles into the United States, including single-shot versions of the AK-47 assault rifle that were modified locally into fully-automatic rifles and have become a favorite of L.A...

...and China North Industries, more commonly known as Norinco...

...To get the Long Beach deal approved quietly, COSCO desperately needed the acquiescence of California's two senators—which they got, until the public uproar over Chinese-government attempts to influence Congress became public...

...The head of the new company's Hong Kong partner, Dhanin Chearavanont, is an ethnic Chinese born in Fujian province, who has built one of Asia's largest business empires...

...The White House has acknowledged that the participants at that The American Spectator • June 19 9 7 meeting discussed U.S...

...Look for the following trademarks: Nutco, Swan, The Pot Bellies, Pot Belly Bear Wear, Prestige, Sunshine Teddy, Soft Dreams, and NE-Animals...

...dollars...

...It's very hard to break down a container of scrap metal to uncover the sensitive equipment that's been disguised inside," says Bruce Murray, director of the Office of Strategic Investigations...

...capital and purchasing sophisticated technologies for their operations back home...

...In 1995, CATIC officials based in Stamford, Connecticut, started negotiations with Northrup Grumman, to purchase a Glen Arm, Maryland manufacturing facility which only a few years earlier had been producing parts for the F-4 Tomcat and the B-1 bomber...

...In 1996 Dhanin was introduced to President Clinton by Pauline Kanchanalak, the head of the U.S.-Thai Business Council and a close friend of DNC fundraiser John Huang...

...and China Assets Holding, Inc., the U.S...

...A country that gets supercomputers can develop nuclear weapons covertly, and have plausible deniabilThe American Spectator June 1997 ity if challenged," Bryen told the House National Security subcommittee...

...policy toward China, where the C.P...

...Now both Feinstein and Sen...

...Johnny Chung, the California businessman who contributed $366,000 to the DNC in exchange for open access to the Clinton White House (which he visited no fewer than fifty-one times) has brought a number of questionable visitors to i600 Pennsylvania Avenue...

...of a Chinese state-owned company was Huaneng Power International Inc., which raised $600 million on the NYSE in October 1994...

...Unlike the Reagan administration, which had a policy of denying the Soviet Union access to American high technology and vigorously prosecuting Soviet agents caught in the act, the Clinton administration has progressively stripped away layer after layer of national-security export controls and has failed to prosecute offenders...

...Wang said...

...On April 6, London's Sunday Times revealed that a Hong Kong company jointly owned by arms maker Norinco and Hong Kong investor T.T...

...The company, Rex International Development Company, Ltd., was established by Norinco in 1982 as an overseas trading arm for its civilian explosives business...

...A Wall Street Journal editorial recently revealed that 30 percent of China's Gross National Product is debt...

...In an April 7,1995 e-mail message, NSC official Robert Suettinger opined that Chung was "a hustler" trying "to show one and all he is a big shot, thereby enhancing his business...

...high-tech goods is legendary in the law-enforcement and counter-espionage communities...

...But the Chinese did purchase some $190,075 worth of equipment, which Northrup officials described as "bits, holders, holder bearings, and tools...

...Since then," says a congressional aide who helped draft the legislation, "they [the Chinese] have simply changed tactics...

...defense contractors, including the Lockheed "Skunk Works," at which America's stealth aircraft were developed in utmost secrecy, and other projects—as yet unknown—are being developed for the Pentagon today...

...Mainly fishing rods...

...Instead, military figures such as Wang Jun and his partner, Major General He Ping (Director of the PLA's General Equipment Department), sit on the boards of scores of Hong Kong corporations that have driven Peking's economic and political expansion...

...In papers filed with the SEC for the new company's initial public offering, Bear Steams described Norinco as "the PLA's weapons manufacturer...

...They are buying trading companies, manufacturing companies, shipping companies, and banks," one law-enforcement official says...

...Norinco subsidiary Beta Toys, of Cerritos, California, appears to be the main importer, and sells the toys to Wal-Mart and other chain stores...

...Under "China Sports" and other brands, Norinco sells ammunition at gun stores throughout the United States...

...Chinese state-run companies are snatching up strategic real estate in places like Long Beach, California, where they plan, with Clinton's warm approval, to turn a former U.S...

...It makes it extremely difficult to penetrate their operations...

...defense contractors, including the Lockheed "Skunk Works," at which America's stealth aircraft were developed in utmost secrecy, and other projects—as yet unknown—are being developed for the Pentagon today...

...sales to China amount to exporting American jobs instead of American products...

...Perhaps the most astonishing Norinco activity in the United States, however, is the weapons manufacturer's distribution of Chinese-made toys...

...For the Clinton concessions to mainland Chinese interests come at a time when the Chinese Communist government has launched an all-out offensive to infiltrate America's political, military, and security apparatus, while penetrating the U.S...

...PLANS M11...

...If, as Ross Munro and Richard Bernstein argue in The Coming Conflict With China, the U.S...

...The Chinese pick these machines up for a song and refurbish them out in L.A...

...The AFL-CIO has been lobbying for greater regulation of U.S...

...entities, so no one knows what is actually shipped out of the country...

...Chung also happens to be the American representative of the daughter of a senior Chinese general, Liu Huaqing, who may have been hoping to use Chung's influence with Clinton to gain favors and access to U.S...

...Without some kind of national-security screening, we're going to have terrorists, drug smugglers, hi-tech thieves, and the Chinese military borrowing on the U.S...

...counterintelligence officials for the services it renders to Chinese intelligence collectors...

...Controlled by China's Ministry of Aerospace Industry, CASIL manufactures everything from missiles to semiconductors, telephone switching equipment, and fax machines...

...Customs is concerned about the huge numbers of shipments to China from all over the United States of machinetools, electronics-manufacturing equipment, and surplus Pentagon hardware, much of which is being labeled by Chinese middlemen and shippers as "scrap...

...Bill Clinton to promote a sister-city relationship between Little Rock and Changchun, the capital of Ji Lin Province in China —at the same time that Clinton was criticizing President Bush for "coddling dictators" in Peking...

...official said...

...street gangs...

...A Feinstein spokesperson maintains the senator knew nothing about the COSCO deal, and denied that her husband's investments in mainland China in any way affected the senator's judgment...

...I was there when they conducted the auction last November, and for $1.9o,000 you could have bought all the machine-tools in the plant" Bryen says he learned from machine-tool traders at the auction that the Chinese were sending tools bought at defense auctions to a Los Angeles company for refurbishing, then shipping them out to China...

...The AFL-CIO has been lobbying for greater regulation of U.S...

...Since the Clinton administration has decontrolled the export of microprocessor-production equipment, even for military-grade gallium arsenide chips, there is little enforcement agents can do except watch the show...

...money to finance new power plants in China...

...Dun & Bradstreet lists the firm as an optical-goods wholesaler, at the head of a growing empire of subsidiaries and affiliated companies...

...Over the past two years, Wang Jun and others have muscled their way onto the boards of many such firms, buying shares in the companies and then demanding a seat on the board...

...The case was eventually handed over to the Commerce Department, which brushed aside concerns that the milling machines would enhance Chinese military manufacturing capabilities, and allowed the company to ship them to China in late 1995...

...Sources say that a Washington grand jury reconvened in late April to reconsider further action—against McDonnell Douglas, which cooperated with U.S...

...companies to establish far-flung networks for both commercial and intelligence purposes in the United States...

...Stephen Bryen doesn't buy it...

...But Feinstein has long been an ardent supporter of extending China's MFN status and an outspoken opponent of linking trade to China's human rights performance—precisely the concession the Chinese were most avidly seeking...

...China Yuchai International is one such entity...

...China's influence in American policy and finance is growing stronger daily—a trend the current President of the United States actively encourages...

...authorities, although their ties to the PLA are unequivocal...

...In the latest wrinkle to this mystery, U.S...

...The case was eventually handed over to the Commerce Department, which brushed aside concerns that the milling machines would enhance Chinese military manufacturing capabilities, and allowed the company to ship them to China in late 1995...

...China remains a nation actively hostile to the United States...

...counterintelligence officials as a front for Chinese espionage efforts...

...It was, if ever there was one, a sweetheart deal...

...capital to modernize aging state-owned steelworks in Jinan...

...Other new Chinese entries on the NASDAQ and the NYSE include China Basic Industries Inc., of Riverside, Connecticut, which is using the U.S...

...investors paid $600 million to purchase 25 percent of the company, while the directors gave away 35 percent of the stock, worth $840 million, to their buddies in the local Chinese governments, sweetening the pot even further with a $51.5 million cash pay-off...

...Among the most active Chinese government-run companies scooping up U.S...

...authorities, although their ties to the PLA are unequivocal...

...bond market is Treasury Secretary Robert Rubin...

...Tan Fang, operating out of Baton Rouge...

...News...

...The company's Cleveland, Ohio subsidiary, Yuchai America, exists solely to purchase sensitive dual-use technology in the United States...

...Says Stephen Bryen, this is "greater than the super-computing power currently available to all Pentagon agencies combined...

...In fact, it appears that the acquisition of the Long Beach naval base was one of the advantages the Chinese were seeking togain from their campaign contributions to the DNC and to Congressional Democrats such as Sen...

...Blum heads the Newbridge Capital Corp., whose managing director, Peter Kwok, also serves as a consultant to a COSCO subsidiary, COSCO Hong Kong Holdings, Ltd...

...None of these companies appears to have attracted the attention of the U.S...

...There are probably scores of similar cases...

...But a sizeable portion of the new funds ($51.5 million) was earmarked for paying off low-interest loans that had been advanced previously by provincial governments, which were given 35 percent of the stock in the new company...

...Says Stephen Bryen, this is "greater than the super-computing power currently available to all Pentagon agencies combined...

...China's "stealth" invasion has also included old-fashioned influence peddling...

...The AFL-CIO, which has tracked Chinese gun and ammunition imports into the United States, has uncovered three NIC outlets in New Jersey, operating in Secaucus, Fairfield, and Carlstadt...

...Liu is in charge of CASIL's overseas business development, which means she will play a major role in CASIL's U.S...

...He also warns that in the event of a default by CITIC or one of the many local Chinese state-owned banks (that are somewhat equivalent to our Savings & Loans and engage in similar39 ly risky investments), they will have to be bailed out—by the U.S...

...The company operates five power plants in China, and pledges to use its U.S...

...Customs and Commerce Department agents express great frustration at being unable to prosecute such cases successfully...

...They are getting state-of-the-art metal-cutting machines for a fraction of what it would cost them to buy them new...

...China Xinxing also has a bonded warehouse near the Long Beach, California naval station...

...In its 1997 annual report, the company boasts that it has become "the largest 'window company' of China Aerospace Corporation both in Hong Kong and overseas," and soon plans to open up a major U.S...

...He is also the Vice Chairman of the Central Military Commission, which overseas the PLA's vast empire of defense, industrial, and trading companies...

...The Associated Press first reported that Clinton twice met with Long Beach city officials to promote the deal...

...By far the largest public offering in the U.S...

...I was just following instructions from my head office...

...And unless we do something to stop it, these are going to come from the U.S...

...since October 4, 1993 under its own name, raising $2.7 billion...

...China's military modernization, its blue-water navy, its new generation of ballistic missile submarines and ICBMs are all going to be paid for with supplier credits...

...Initially incorporated in Bermuda, the company went public on the New York Stock Exchange (NYSE) in December 1994 and used the $70 million in proceeds to modernize its diesel engine factories in China...

...But Kwok has long been known as a middleman for Chinese-government investment...

...shipping companies report they were shut out from bidding on Long Beach by the Maritime Administration, the federal agency that was in charge of determining the fate of the former naval station, because the China fix was in...

...While federal investigators are just beginning to untie the knots of Chinese government attempts to influence the White House and other elected officials through campaign contributions and other means, it is overwhelmingly clear that Peking has recognized that the United States is easy enough to infiltrate...

...Bryen saw another instance of Chinese interest in sensitive defense-production equipment in a former General Electric plant near Valley Forge, Pennsylvania, parts of which were closed down by new owner Lockheed Martin...

...The lead fraud investigator in the Los Angeles Customs office, Mark Woltney, cautioned against jumping to any conclusions...

...It was, if ever there was one, a sweetheart deal...

...firm...

...Robert Levy, whose Michigan-based auction house has conducted many of these sales, says, "We are now forbidding foreigners entirely from the bidding process...

...In February 1996, he brought Wang Jun, the head of China's most notorious state-run arms company, Poly Technologies, to the White 34 June r 9 9 7 The American Spectator House for coffee with the president...

...Finally, he said that his Peking 40 June r 99 7 • The American Spectator office had ordered him to make the purchases, although he couldn't remember the type of equipment involved...

...defense plants...

...transfers, that a senior Chinese official threatened last year to launch nuclear missiles against Los Angeles when the United States moved two aircraft carriers into the Taiwan Straits to deter a Chinese attack against Taiwan...

...General Liu sits on virtually every leadership panel of the People's Republic of China, including the Politburo of the Chinese Communist Party...

...MEET Much of China's involvement in the United States is perfectly legal.' Today if a staterun Chinese company wishes to set up an American subsidiary, or even just a representative office, it can do so without restriction...

...The White House has acknowledged that the participants at that The American Spectator • June 19 9 7 meeting discussed U.S...

...laws when the Chinese sell cruise missiles to Iran by sanctioning the Chinese firms involved, welcomed the most notorious Chinese arms dealer into the White House, and encouraged the man's firm to raise money in U.S...

...The company announced in November that it had agreed to form a joint venture with the state-controlled Shanghai Avionics Corporation and the Shanghai Broadcast Equipment Factory to build GPS systems in China...

...And what other services has Johnny Chung provided for them in the United States...

...So why is Bill Clinton, purportedly the U.S...

...or NIC International Trade Corp...

...policy toward China, where the C.P...

...Donald Beall, president of Rockwell International, was in Peking the same day that Bryen and Reinsch were testifying on Capitol Hill, to announce new projects with the Chinese government 'We see China as a driver in our plan to double the size of our business in Asia Pacific," Beall told reporters...

...When told that Northrup Grumman had identified him as the purchaser, he fumbled: "I don't know who put my signature there...

...He has found 36 Chinese-government bond issues in the U.S...

...seller of the machines, McDonnell Douglas, was fined because CATIC diverted the machines from a civilian airliner plant to a new factory where they intended to assemble the Su-27 fighter-bomber...

...In the future, apart from being fitted with continually developed new warheads [improved with U.S...

...All have been registered with the United States Patent and Trademark office by Norinco affiliates...

...Our technology controls are too weak to prevent Chinese entities from purchasing military secrets, our capital markets are so wide-open that Chinese state investors can finance military modernization on Wall Street, and our statutes governing direct foreign investment are virtually non-existent, allowing Chinese KENNETH R. TIMMERMAN wrote "All Roads Lead to China," which appeared in the March issue of The American Spectator...

...But a sizeable portion of the new funds ($51.5 million) was earmarked for paying off low-interest loans that had been advanced previously by provincial governments, which were given 35 percent of the stock in the new company...

...capital and purchasing sophisticated technologies for their operations back home...

...companies that have no obvious ties to the PRC...

...A commercially available data base maintained by the Journal of Commerce shows on average between 600 and 1,000 shipments every month to China of materials listed as various kinds of scrap...

...Robinson warns that there is currently no screening of the U.S...

...DOES NOT =MT With the change in export regulations, especially the dramatic relaxation in controls over supercomputer sales, there is very little the Chinese can do these days to break the law...

...In the latest wrinkle to this mystery, U.S...

...Blum has accompanied her each time at his own expense and has attended many of her meetings with President Jiang Zemin and other top Chinese leaders—an unusual degree of access for a private businessman," the Los Angeles Times reported...

...Customs and Commerce Department agents express great frustration at being unable to prosecute such cases successfully...

...And so on...

...seller of the machines, McDonnell Douglas, was fined because CATIC diverted the machines from a civilian airliner plant to a new factory where they intended to assemble the Su-27 fighter-bomber...

...in the offices of his Torrance, California business, Automated Intelligence Systems Inc...

...Dianne Feinstein...

...So why is Bill Clinton, purportedly the U.S...

...since October 4, 1993 under its own name, raising $2.7 billion...

...bond market because it's simply the most accessible and liquid market in the world...

...If they default, you and I default...

...The volumes are simply phenomenal...

...or NIC International Trade Corp...

...official investigating the case said the equipment "either went to an Iranian chemical weapons plant, or to a missile plant...

...Since Bill Clinton came to office, in fact, the Chinese have been busily establishing companies that trade publicly in the U.S., with the dual purpose of attracting U.S...

...branch of a Hong Kong red chip of the same name...

...It was a very historic moment," Feinstein told the Times...

...firm...

...But Feinstein has long been an ardent supporter of extending China's MFN status and an outspoken opponent of linking trade to China's human rights performance—precisely the concession the Chinese were most avidly seeking...

...In all the cases I have managed," Wolthey said, "I have yet to see one where COSCO or any other shipping line is conducting business illegally...

...And the risk is real...

...04 Visit The American Spectator Online at ‘N \VW .spectator.org The American Spectator • June 1997 79...

...To get the Long Beach deal approved quietly, COSCO desperately needed the acquiescence of California's two senators—which they got, until the public uproar over Chinese-government attempts to influence Congress became public...

...After the meeting, Chung squired his Chinese guest over to the Commerce Department to discuss how to facilitate the sale of Haoman beer in the United States...

...You break your neck on a case, and then the Justice Department says they don't want to prosecute, or else the judge throws it out on a technicality...

...The union also contends that many U.S...

...Tsui is under investigation by the Hong Kong authorities for having attempted to ship chemical weapons manufacturing equipment to Iran...

...A third, China Xinxing Corporation, is directly controlled by the PLA General Logistics Department, and operates from an office suite at inn Santa Monica Boulevard in Los Angeles under a variety of names (China National Medicines and Health Products, China Huaguang Corporation, Perfect Treasure Industrial, Ltd., Begin Famous Enterprises Co., Ltd., etc...

...commander in chief, giving away the store...

...That is an impractical choice given the volume of business in Long Beach and Los Angeles, the preferred ports of Chinese shippers...

...counterintelligence officials have long kept an eye on COSCO, which they have identified as an organization which uses its legitimate business activities as a front for intelligence-gathering...

...bond market is Treasury Secretary Robert Rubin...

...investors paid $600 million to purchase 25 percent of the company, while the directors gave away 35 percent of the stock, worth $840 million, to their buddies in the local Chinese governments, sweetening the pot even further with a $51.5 million cash pay-off...

...CATIC's Wang Meng, speaking from their Connecticut office, acknowledged that the firm had shipped the equipment to China...

...In the future, apart from being fitted with continually developed new warheads [improved with U.S...

...Meanwhile the Chinese government's leading business conglomerate, CITIC, has been floating bond issues in the United States, tying the knot with major U.S...

...All they wanted were router bits...

...The Chinese weren't interested in machines," says one official involved in the negotiations...

...I deal mainly in offsets and subcontracts for our exports to the United States...

...SO MUCH SON U.S...

...Each month, 132,000 containers come into Long Beach and L.A.," says Woltney, "while 125,000 containers go out...

...On March 7 Feinstein told the press that she and five other lawmakers had been briefed by the FBI in June 1996 that they were targets of a campaign of influence by the Chinese government...

...In 1996 Dhanin was introduced to President Clinton by Pauline Kanchanalak, the head of the U.S.-Thai Business Council and a close friend of DNC fundraiser John Huang...

...This allows them to buy the equipment, arrange the financing, and ship the products without ever interacting with an American...

...But Chung is obviously no ordinary middleman...

...In all, since the Clintons came to Washington, CITIC has floated four bond issues in U.S...

...So it is simply not true that China is credit-worthy," Robinson believes...

...Their engines power military trucks...

...The company told Dun & Bradstreet analysts that trade in machine-tools accounted for 27.5 percent of its annual turnover...

...And this is just one case we know about by chance," Welker says...

...street gangs...

...All they wanted were router bits...

...investigators say they have been told that Rex has been shut down by Norinco "while they wait for July i." The PLA has established an extensive presence in the United States through private companies controlled by military trading groups such as Norinco, which has set up a whole family of trading companies that act as wholesalers for consumer goods, "sporting" rifles, and chemicals made in Chinese military factories...

...While the Hong Kong authorities have welcomed the massive influx of mainland Chinese assets into the Territories, they are less pleased with the shady business practices and arms dealing of the PLA empire...

...Highly sensitive technology was just laying around, including things like missile skins which we know the Chinese are very eager to get...

...On March 7 Feinstein told the press that she and five other lawmakers had been briefed by the FBI in June 1996 that they were targets of a campaign of influence by the Chinese government...

...Bill Clinton himself...

...companies to establish far-flung networks for both commercial and intelligence purposes in the United States...

...I don't know what equipment was actually purchased," Mr...

...11111LE AMERICA ILE SINCE 1993 FRONT COMPANIES FOR COMMUNIST CHINA AVE BEEN ACTIVELY BUYING UP (AND SPYING ON) THE U.S.—WHICH IS FINE BY WASHINGTON AND WALL STREET...

...counterintelligence officials have long kept an eye on COSCO, which they have identified as an organization which uses its legitimate business activities as a front for intelligence-gathering...

...China Industrial Group, Inc., a Hong Kong trading firm that supplies wool to Chinese textile plants and sells Chinese chemicals overseas...

...China Pacific, Inc., a holding company incorporated in Nevada which raised $17 million on the NASDAQ in 1995-1996, to modernize a steel mill in Chengdu...

...A commercially available data base maintained by the Journal of Commerce shows on average between 600 and 1,000 shipments every month to China of materials listed as various kinds of scrap...

...In its 1997 annual report, the company boasts that it has become "the largest 'window company' of China Aerospace Corporation both in Hong Kong and overseas," and soon plans to open up a major U.S...

...What kind of exports...

...The Chinese are now buying up entire factories, lock-stock-and-barrel," says one agent...

...Under "China Sports" and other brands, Norinco sells ammunition at gun stores throughout the United States...

...And the risk is real...

...None of these companies appears to have attracted the attention of the U.S...

...Tan Fang, operating out of Baton Rouge...

...It's an appalling record by any standard—and there's apparently no end in sight for Clinton's open-arms policy toward Peking...

...If they default, you and I default...

...But the Americans doubt anything will come of the case, since it would be "highly embarrassing" for Peking to have Norinco prosecuted in Hong Kong only weeks before the handover...

...36 June r 9 97 • The American Spectator wanted to invest in the U.S...

...Look for the following trademarks: Nutco, Swan, The Pot Bellies, Pot Belly Bear Wear, Prestige, Sunshine Teddy, Soft Dreams, and NE-Animals...

...But TAS has learned that none was conducted...

...AFL-CIO researcher David Welker claims that the son of a Shanghai deputy police chief recently showed up in south Florida with $25 million he 'It did get caught once, in i99o, when the China National AeroTechnology Import-Export Corporation attempted to purchase an aerospace subcontractor working for Boeing...

...Instead, military figures such as Wang Jun and his partner, Major General He Ping (Director of the PLA's General Equipment Department), sit on the boards of scores of Hong Kong corporations that have driven Peking's economic and political expansion...

...On August 9, 1996, after serving as Liu Chao Ying's registered agent in the United States, Chung formally incorporated a branch of her Mar-swell Investment Inc...

...One year earlier, when China was testing missiles in the Taiwan Straits, a Chinese-language newspaper in Hong Kong, Kuang Chiao Ching, reported that China's DF-i5 missiles (known as the IVI9 in the West), were the 'expert' of the Second Artillery units," China's nuclear missile forces...

...Y KENNETH R. TIMMERMAN hat else is Bill Clinton willing to do to aid Communist China...

...counterintelligence officials for the services it renders to Chinese intelligence collectors...

...But many U.S...

...Former Pentagon official Dr...

...Billions of dollars of taxpayer money went into creating these factories, and it's being given away for literally pennies on the dollar...

...COSCO's acquisition of the Long Beach naval base thus should have triggered all kinds of national-security reviews...

...This is a massive global threat to the security of this country...

...There is another problem with COSCO's expansion into the Long Beach naval base: It will be within electronic earshot of major U.S...

...CATIC signed a contract on May 21,1996, for the parts it purchased prior to the public auction and shipped them to China shortly thereafter, company officials said...

...Groups like the California Teachers Retirement Fund or the ATT Pension Fund were instrumental in boycotting South African financial instruments during the apartheid regime...

...of a Chinese state-owned company was Huaneng Power International Inc., which raised $600 million on the NYSE in October 1994...

...Former Pentagon official Dr...

...The company announced in November that it had agreed to form a joint venture with the state-controlled Shanghai Avionics Corporation and the Shanghai Broadcast Equipment Factory to build GPS systems in China...

...commander in chief, giving away the store...

...One year earlier, when China was testing missiles in the Taiwan Straits, a Chinese-language newspaper in Hong Kong, Kuang Chiao Ching, reported that China's DF-i5 missiles (known as the IVI9 in the West), were the 'expert' of the Second Artillery units," China's nuclear missile forces...

...operation, CASIL (America...

...technology is CATIC, the China National Aero-Technology Import-Export Corporation...

...trade with China because of Chinese prison-labor imports into the United States...

...Since then," says a congressional aide who helped draft the legislation, "they [the Chinese] have simply changed tactics...

...China's military modernization, its blue-water navy, its new generation of ballistic missile submarines and ICBMs are all going to be paid for with supplier credits...

...defense plants...

...Because that's what these CITIC bonds are financing...

...Y KENNETH R. TIMMERMAN hat else is Bill Clinton willing to do to aid Communist China...

...This allows them to buy the equipment, arrange the financing, and ship the products without ever interacting with an American...

...Roger W. Robinson, Jr., a Reagan administration National Security Council aide and an investment banker by trade, has been tracking China's penetration of the U.S...

...The volumes are simply phenomenal...

...In March 1995, Chung brought along Jichun Huang, identified in White House records as a CITIC vice president...

...You break your neck on a case, and then the Justice Department says they don't want to prosecute, or else the judge throws it out on a technicality...

...bond market...

...street gangs...

...The next day, according to the Washington Times, Kanchanalak donated $85,000 to the DNC...

...According to the AFL-CIO's David Welker, 'The purely military companies tend to stay away from direct investments in the United States because of the public disclosure requirements...

...Earlier, on December 24, 1994, Chung brought Chen Shizeng, the president of a Chinese beer company, Haoman, to meet with Clinton...

...Since Bill Clinton came to office, in fact, the Chinese have been busily establishing companies that trade publicly in the U.S., with the dual purpose of attracting U.S...

...The Wall Street Journal revealed in March that the state-owned Bank of China made wire transfers "in increments of $50,00o and $ioo,000" to Clinton crony Charlie Yah Lin Trie, who then donated large sums to the DNC and Bill Clinton's Legal Defense Fund...

...But Commerce officials caution that "an error in our reporting on Chinese investment" may well lead to higher figures...

...It also has joint investments with the notorious Lippo Group...

...supercomputers], it will be equipped with a global position system [undoubtedly built by Rockwell...

...We have obtained data on no companies in the United States that are affiliated with the PLA or with China's state council," says Jeffrey Fiedler, who heads the union's China research project...

...Beta Chemicals, which acts as a wholesale importer of Chinese chemicals...

...PLANS M11...

...But the Chinese did purchase some $190,075 worth of equipment, which Northrup officials described as "bits, holders, holder bearings, and tools...

...transfers, that a senior Chinese official threatened last year to launch nuclear missiles against Los Angeles when the United States moved two aircraft carriers into the Taiwan Straits to deter a Chinese attack against Taiwan...

...The head of the new company's Hong Kong partner, Dhanin Chearavanont, is an ethnic Chinese born in Fujian province, who has built one of Asia's largest business empires...

...There are probably scores of similar cases...

...The bond market is going to become the principal funding agency for the proliferation of weapons of mass destruction in the twenty-first century...

...Among the most active Chinese government-run companies scooping up U.S...

...In an April 7,1995 e-mail message, NSC official Robert Suettinger opined that Chung was "a hustler" trying "to show one and all he is a big shot, thereby enhancing his business...

...CATIC paid $3,5oo for the machine—basically, what it cost to crate the thing up," one government investigator said...

...Group has major investments, including several joint ventures with Norinco...

...She needs to ensure that CASIL maintains access to U.S...

...economy in unprecedented and hitherto unnoticed ways...

...China now feels confident enough in the accuracy of its ICBMs, thanks to these U.S...

...Known as the "red chips," because they are listed on the Hong Kong Stock Exchange, many of these companies have grown into multi-billion dollar enterprises with interests spanning the globe...

...The goods were then shipped to Hong Kong, Shanghai, Vietnam, the Philippines, and other overseas destinations as scrap...

...By far the largest public offering in the U.S...

...Barbara Boxer have called on the Pentagon and the FBI to launch a national security review of the Long Beach contract...

...Supercomputers also will help the Chinese to improve the accuracy of their ICBMs, since long-range accuracy is determined to a great extent by global weather patterns which require huge computing power to simulate and anticipate...

...street gangs...

...What does that kind of access mean...

...Do they want to be financing the delivery of AK-47 assault rifles to L.A...

...In all, since the Clintons came to Washington, CITIC has floated four bond issues in U.S...

...operation, CASIL (America...

...Another major state-controlled company that has attracted Wall Street capital is China Resources (Holding), notorious among U.S...

...We're still checking...

...Feinstein's husband, Richard Blum, is something of a legend on the West Coast, in part because of his investments in China...

...38 June 1997 • The American Spectator Until 1994, Norinco legally imported "sporting" rifles into the United States, including single-shot versions of the AK-47 assault rifle that were modified locally into fully-automatic rifles and have become a favorite of L.A...

...Meanwhile the Chinese government's leading business conglomerate, CITIC, has been floating bond issues in the United States, tying the knot with major U.S...

...Liu and others in mainland China...

...Dianne Feinstein...

...A U.S...

...The Commerce Department, which also tracks foreign investment in the United States, has identified only 59 Chinese companies operating in the United States...

...They have also identified a subsidiary known as China North Inc...

...taxpayer...

...Most of the sales were made by Silicon Graphics or Hewlett Packard, both of which were heavy contributors to the Clinton campaigns...

...The company, Rex International Development Company, Ltd., was established by Norinco in 1982 as an overseas trading arm for its civilian explosives business...

...Similarly, Chinese companies seeking to raise capital on Wall Street may list stocks freely, as long as they submit corporate and financial information as required by the Securities and Exchange Commission...

...It uses its own network of distributors known variously as China North Industries Corp...

...How will you recognize a Norincomade toy (as opposed to toys made in non-military Chinese factories...

...bond market...

...Over the past two years, Wang Jun and others have muscled their way onto the boards of many such firms, buying shares in the companies and then demanding a seat on the board...

...We have obtained data on no companies in the United States that are affiliated with the PLA or with China's state council," says Jeffrey Fiedler, who heads the union's China research project...

...But many U.S...

...These firms are ultimately controlled by Peking...

...money to finance new power plants in China...

...Tsui is under investigation by the Hong Kong authorities for having attempted to ship chemical weapons manufacturing equipment to Iran...

...In one case, Customs found twenty-eight boxes containing tank and howitzer parts buried beneath a load of automotive parts...

...The lead company is Beta First, based in Cerritos, California...

...But the high volume of COSCO containers in and out of Long Beach makes detecting illicit shipments difficult, say U.S...

...government security review...

...How much of the $366,000 that Chung donated to the Clinton campaign originated with Ms...

...They are buying trading companies, manufacturing companies, shipping companies, and banks," one law-enforcement official says...

...The Chinese weren't interested in machines," says one official involved in the negotiations...

...since 1989, which have raised $6.725 billion for Chinese government–owned banks and trading companies...

...Undersecretary of Commerce for Export Administration, William Reinsch, stupefied a House National Security subcommittee on April 15 when he acknowledged that forty-six supercomputers have been shipped to China over the past fifteen months, and that the Commerce Department had no idea where the computers had gone because the licensing requirements had been eliminated...

...Yuchai representatives attended a Philadelphia auction on the premises of Heinz Corporation, which made jet engines for the Pentagon, and purchased two sophisticated five-axis milling machines...

...Controlled by China's Ministry of Aerospace Industry, CASIL manufactures everything from missiles to semiconductors, telephone switching equipment, and fax machines...

...Blum has denied any knowledge of the COSCO deal, or Peter Kwok's relationship to the Chinese state-run company...

...Group has major investments, including several joint ventures with Norinco...

...It may help that Li Xiaopeng, the son of the Chinese premier, sits on the company's board...

...It was the same technique used by mainland China companies to gain "back-door listings" in Hong Kong...

...A number of these bonds, Robinson believes, have been used to fund overseas purchases of dual-use technology needed for military projects...

...While Feinstein appears to have supported the COSCO project, COSCO's chief lobbyist turned out to be...

...bond market...

...In a written statement, Blum declared, "To say that somehow that I had knowledge of or was involved in any way with Long Beach is a stretch, to say the least...

...Beta Chemicals, which acts as a wholesale importer of Chinese chemicals...

...COSCO is responsible for a large portion of them...

...The Associated Press first reported that Clinton twice met with Long Beach city officials to promote the deal...

...dollars, attracting $800 million...

...According to the AFL-CIO's David Welker, 'The purely military companies tend to stay away from direct investments in the United States because of the public disclosure requirements...

...It's very hard to break down a container of scrap metal to uncover the sensitive equipment that's been disguised inside," says Bruce Murray, director of the Office of Strategic Investigations...

...When they attempted to ship them to China on May 18,1994, however, the machines were intercepted by U.S...

...officials by pressing the Chinese to move the machines back to a civilian plant...

...COSCO's expanded presence in Long Beach has got U.S...

...capital to modernize aging state-owned steelworks in Jinan...

...Sources say that a Washington grand jury reconvened in late April to reconsider further action—against McDonnell Douglas, which cooperated with U.S...

...The Commerce Department, which also tracks foreign investment in the United States, has identified only 59 Chinese companies operating in the United States...

...Without some kind of national-security screening, we're going to have terrorists, drug smugglers, hi-tech thieves, and the Chinese military borrowing on the U.S...

...While Feinstein appears to have supported the COSCO project, COSCO's chief lobbyist turned out to be...

...Dun & Bradstreet lists the firm as an optical-goods wholesaler, at the head of a growing empire of subsidiaries and affiliated companies...

...Now both Feinstein and Sen...

...And in the months preceding these meetings, according to Federal Elections Commission records, Clinton-pal Johnny Chung contributed $175,000 to the DNC...

...And this is just one case we know about by chance," Welker says...

...While federal investigators are just beginning to untie the knots of Chinese government attempts to influence the White House and other elected officials through campaign contributions and other means, it is overwhelmingly clear that Peking has recognized that the United States is easy enough to infiltrate...

...and China North Industries, more commonly known as Norinco...

...government investigators, however, believe CATIC also purchased several large machine-tools as part of the deal, including a ioo-foot-long stretch-forming press used in manufacturing the main wing spars for the F-4, that cost $1.5 million when it was new some fifteen years ago...

...He is also the Vice Chairman of the Central Military Commission, which overseas the PLA's vast empire of defense, industrial, and trading companies...

...Blum has accompanied her each time at his own expense and has attended many of her meetings with President Jiang Zemin and other top Chinese leaders—an unusual degree of access for a private businessman," the Los Angeles Times reported...

...Chinese state-run companies are snatching up strategic real estate in places like Long Beach, California, where they plan, with Clinton's warm approval, to turn a former U.S...

...It's an appalling record by any standard—and there's apparently no end in sight for Clinton's open-arms policy toward Peking...

...MAMIE FOR HIGH-TECH China's thirst for U.S...

...Another cutting-edge American technology that has been decontrolled over the past three years is Global Positioning Systems (GPS), the tiny satellite receivers used by boat owners for maritime navigation—and in a more accurate version, to guide cruise missiles and other weapons...

...Navy base into a container port to be used by a company identified by U.S...

...So it is simply not true that China is credit-worthy," Robinson believes...

...One such enterprise, Hong Kong-Macao Holdings (HMH), did enter the North American capital markets —but in Toronto, not in the United States...

...Liu is in charge of CASIL's overseas business development, which means she will play a major role in CASIL's U.S...

...dollars, attracting $800 million...

...She needs to ensure that CASIL maintains access to U.S...

...The deal was blocked thanks to the 1988 Exon-Florio Act, which requires a national security review when foreign firms seek to purchase U.S...

...The Chinese government has floated six bonds in the U.S...

...Chung also set up a meeting with Energy Secretary Hazel O'Leary for the head of China's state-run petrochemical company, Sheng Huaren, in October 1995...

...high technology for the firm's electronics and aerospace manufacturing operations—and that means high-level political access in Washington...

...The bond market is going to become the principal funding agency for the proliferation of weapons of mass destruction in the twenty-first century...

...But little has come of it beyond a series of generic briefings that left lawmakers "more confused than anything else," a congressional staffer said...

...HONG KONG'S NEW ROLE As the July i handover approaches, in fact, mainland China has become the largest single investor in Hong Kong...

...Hong Kong Customs seized documents from Rex in January which showed that the company had brokered the sale to Iran of high-grade seamless steel pipes, which were specially treated to handle corrosive materials...

...In addition to marketing Norinco-made ceiling fans, it is engaged in "import and export trade...specializing in scientific, technical, optical, electronic products, organic and inorganic chemicals to name just a few...

...Their figures reflect only what Chinese companies have chosen to declare—and only concern cases in which the Chinese own at least io percent of a U.S...

...To support these purchases, Chinese nationals are using small, defunct U.S...

...In another, they discovered thirty-seven inertial navigation systems used in the F-117A Stealth fighter and the F-in bomber...

...Robinson warns that there is currently no screening of the U.S...

...operations...

...Despite feeble protests by the Commerce Department (which has never punished CATIC), the machines are still in China...

...Another major PLA arms exporter, Carrie Enterprises, has established an outlet in Kings County, New York, that imports bullet-proof vests and other PLA-made goods into the U.S...

...Bill Clinton to promote a sister-city relationship between Little Rock and Changchun, the capital of Ji Lin Province in China —at the same time that Clinton was criticizing President Bush for "coddling dictators" in Peking...

...It was a COSCO ship, the Princess Bride, that was slated to haul AK-47's to Long Beach on behalf of Poly Technologies in 1996, before a leak from the State Department alerted the company, which then canceled the delivery...

...And in the months preceding these meetings, according to Federal Elections Commission records, Clinton-pal Johnny Chung contributed $175,000 to the DNC...

...China has noticed the lack of enforcement...

...The only tip-off you get is when the Chinese companies come to tour the defense plants before the auction and take notes on the equipment they want Then they let their agents do the buying...

...Hong Kong-Macao is controlled by the PLA's General Political Department through Kaili Corporation, also known as Carrie Enterprises, a major weapons exporter...

...Sure, it's demoralizing," says one senior U.S...

...For the Clinton concessions to mainland Chinese interests come at a time when the Chinese Communist government has launched an all-out offensive to infiltrate America's political, military, and security apparatus, while penetrating the U.S...

...And so on...

...Customs inspectors—especially since the company labels so many of its shipments as scrap...

...China now feels confident enough in the accuracy of its ICBMs, thanks to these U.S...

...In January 1996, the couple had the privilege of dining in Mao Tse-tung's former residence in the Forbidden City, becoming the first foreigners allowed to see Mao's bedroom and his swimming pool...

...But it's probably too late...

...Trie convinced then–Gov...

...These include Sunico Industries, of Santa Fe Springs (stone tiles and optical goods...

...There is another problem with COSCO's expansion into the Long Beach naval base: It will be within electronic earshot of major U.S...

...official said...

...Pokphand Co...

...Yuchai representatives attended a Philadelphia auction on the premises of Heinz Corporation, which made jet engines for the Pentagon, and purchased two sophisticated five-axis milling machines...

...The Chinese government has floated six bonds in the U.S...

...People's Liberation Army (PLA) weapons firms have set up shop on our shores through a variety of front companies and obscure subsidiaries...

...in the offices of his Torrance, California business, Automated Intelligence Systems Inc...

...bond market...

...Other new Chinese entries on the NASDAQ and the NYSE include China Basic Industries Inc., of Riverside, Connecticut, which is using the U.S...

...Current regulations do not safeguard this technology," Bryen testified, "and, in my opinion, are an exercise in executive branch recklessness....They are a clear and present danger to America's national security...

...Beta Unitex, based in Fontana, California, appears to be the largest of the Beta First companies, with thirty-one employees and annual sales in excess of $7 million...

...One such enterprise, Hong Kong-Macao Holdings (HMH), did enter the North American capital markets —but in Toronto, not in the United States...

...I toured the warehouse last year, after the Chinese had been through it...

...But we have reason to believe the real number of Chinese companies operating in the United States is many times higher...

...SO MUCH SON U.S...

...These firms are ultimately controlled by Peking...

...China remains a nation actively hostile to the United States...

...Is there a connection here between Chinese-government payoffs and concessions on national security rammed through by the White House...

...CATIC's purchase of thirty-one sophisticated machine-tools from a former B-1 bomber plant in Columbus, Ohio, in 1994 led to a grand jury investigation that continues to this day...

...The missile skins were made of a specially treated lightweight alloy that is extremely difficult to manufacture, Bryen said...

...BONDS AWAY Americans wanting to invest in the modernization of mainland China's military factories have another vehicle for placing their money effectively: Now they can buy Chinese government bonds in U.S...

...The Wall Street Journal revealed in March that the state-owned Bank of China made wire transfers "in increments of $50,00o and $ioo,000" to Clinton crony Charlie Yah Lin Trie, who then donated large sums to the DNC and Bill Clinton's Legal Defense Fund...

...But it's probably too late...

...AFL-CIO researcher David Welker claims that the son of a Shanghai deputy police chief recently showed up in south Florida with $25 million he 'It did get caught once, in i99o, when the China National AeroTechnology Import-Export Corporation attempted to purchase an aerospace subcontractor working for Boeing...

...When asked whether it had required an export license, he insisted that all the equipment was "C-dest"— which means it can be shipped to most countries, including China, without a U.S...

...Bill Clinton himself...

...A 16-month Customs investigation, dubbed "Operation Overrun," uncovered a series of Chinese networks purchasing sensitive military equipment from depots run by the Defense Logistics Agency, a federal agency that is supposed to stockpile weapons withdrawn from inventory and eventually sell them to the highest bidder after they have been properly "demilitarized...

...The U.S...

...Barbara Boxer have called on the Pentagon and the FBI to launch a national security review of the Long Beach contract...

...Each month, 132,000 containers come into Long Beach and L.A.," says Woltney, "while 125,000 containers go out...

...investment banks who are lobbying Congress against revoking China's Most Favored Nation (MFN) trading status...

...Customs and impounded...

...But Kwok has long been known as a middleman for Chinese-government investment...

...China has noticed the lack of enforcement...

...What does that kind of access mean...

...How will you recognize a Norincomade toy (as opposed to toys made in non-military Chinese factories...

...White House documents now show that Trie played a significant role in convincing Clinton to do business with China even before the 1992 election...

...The company operates five power plants in China, and pledges to use its U.S...

...It means that we may totally misjudge the capabilities of a hostile country or potential adversary, as we did in the case of Iraq...

...It uses its own network of distributors known variously as China North Industries Corp...

...Robert Levy, whose Michigan-based auction house has conducted many of these sales, says, "We are now forbidding foreigners entirely from the bidding process...

...trade with China because of Chinese prison-labor imports into the United States...

...In a written statement, Blum declared, "To say that somehow that I had knowledge of or was involved in any way with Long Beach is a stretch, to say the least...

...Trie convinced then–Gov...

...In 1995, CATIC officials based in Stamford, Connecticut, started negotiations with Northrup Grumman, to purchase a Glen Arm, Maryland manufacturing facility which only a few years earlier had been producing parts for the F-4 Tomcat and the B-1 bomber...

...The Bank of China, which transferred cash to Charlie Trie, issued four bonds worth $850 million...

...So far the President of the United States has accepted campaign contributions from mainland Chinese donors, sponsored questionable investments for them in the United States, approved the sale of sophisticated technology to the Chinese military, failed to enforce U.S...

...COSCO operates a fleet of ELINT [electronic intelligence] trawlers for the PRC government that can sit in Long Beach harbor and eavesdrop on communications throughout the Los Angeles area," one U.S...

...In papers filed with the SEC for the new company's initial public offering, Bear Steams described Norinco as "the PLA's weapons manufacturer...

...COSCO operates a fleet of ELINT [electronic intelligence] trawlers for the PRC government that can sit in Long Beach harbor and eavesdrop on communications throughout the Los Angeles area," one U.S...

...In addition to marketing Norinco-made ceiling fans, it is engaged in "import and export trade...specializing in scientific, technical, optical, electronic products, organic and inorganic chemicals to name just a few...

...The American Spectator • June 1997 CITIC Chairman Wang Jun came to the United States in February 1996 originally to discuss further bond offerings with Clinton crony Ernest Green at Lehman Brothers in New York...

...And what other services has Johnny Chung provided for them in the United States...

...In 1989, five months after the Tiananmen Square massacre of pro-democracy students, Kwok helped CITICraise $120 million to launch the first Asiasat communications satellite...

...It makes it extremely difficult to penetrate their operations...

...Blum has denied any knowledge of the COSCO deal, or Peter Kwok's relationship to the Chinese state-run company...

...The United States is vulnerable to such infiltration for a number of reasons...

...counterintelligence officials tearing their hair out, because of the company's well-known involvement in high-technology smuggling...

...bond market to make sure that "undesirables" are excluded from raising cash in the U.S...

...Mainly fishing rods...

...COSCO's acquisition of the Long Beach naval base thus should have triggered all kinds of national-security reviews...

...Beta Unitex, based in Fontana, California, appears to be the largest of the Beta First companies, with thirty-one employees and annual sales in excess of $7 million...

...I deal mainly in offsets and subcontracts for our exports to the United States...

...In 1995, it took over a listed Canadian company and changed its name to HMH China Investments Ltd., transferring real estate assets owned in China to the new company...

...I was just following instructions from my head office...

...Pokphand Co...

...But the Americans doubt anything will come of the case, since it would be "highly embarrassing" for Peking to have Norinco prosecuted in Hong Kong only weeks before the handover...

...His daughter, Liu Chao Ying, is a managing director of China Aerospace International Holdings Ltd (CASIL), a Hong Kong subsidiary of China Aerospace Corporation...

...Since 1995 Blum has accompanied Feinstein on three trips to China, where the couple have conferred with senior government officials in Peking...

...Officials at Northrup Grumman dispute this version...

...defense plants that have been closed because of downsizing, searching for used production equipment and even entire factories that it can then ship to China...

...The United States is vulnerable to such infiltration for a number of reasons...

...laws when the Chinese sell cruise missiles to Iran by sanctioning the Chinese firms involved, welcomed the most notorious Chinese arms dealer into the White House, and encouraged the man's firm to raise money in U.S...

...Hong Kong-Macao is controlled by the PLA's General Political Department through Kaili Corporation, also known as Carrie Enterprises, a major weapons exporter...

...But little or no demilitarization (Continued on page 78) 41 Timmerman (Continued from page 4r) occurred, and "scrap buyers" were able to purchase entire radar systems, sophisticated electronics, counter-measures systems, and even computers with hard drives crammed with data marked "Classified SCI" (special compartmented information), one of the military's highest secret classifications...

...Their figures reflect only what Chinese companies have chosen to declare—and only concern cases in which the Chinese own at least io percent of a U.S...

...His coffee with Clinton at the White House was set up by Green and Charlie Trie to coincide with the bond talks...

...official investigating the case said the equipment "either went to an Iranian chemical weapons plant, or to a missile plant...

...I was there when they conducted the auction last November, and for $1.9o,000 you could have bought all the machine-tools in the plant" Bryen says he learned from machine-tool traders at the auction that the Chinese were sending tools bought at defense auctions to a Los Angeles company for refurbishing, then shipping them out to China...

...Initially incorporated in Bermuda, the company went public on the New York Stock Exchange (NYSE) in December 1994 and used the $70 million in proceeds to modernize its diesel engine factories in China...

...In May, COSCO shipped "mixed metal scrap," "copper scrap," and "scrap electric motors...

...36 June r 9 97 • The American Spectator wanted to invest in the U.S...

...companies that have no obvious ties to the PRC...

...A third, China Xinxing Corporation, is directly controlled by the PLA General Logistics Department, and operates from an office suite at inn Santa Monica Boulevard in Los Angeles under a variety of names (China National Medicines and Health Products, China Huaguang Corporation, Perfect Treasure Industrial, Ltd., Begin Famous Enterprises Co., Ltd., etc...

...technology is CATIC, the China National Aero-Technology Import-Export Corporation...

...The company is a joint venture between the Hong Kong investment group, C.P...

...While the Hong Kong authorities have welcomed the massive influx of mainland Chinese assets into the Territories, they are less pleased with the shady business practices and arms dealing of the PLA empire...

...HONG KONG'S NEW ROLE As the July i handover approaches, in fact, mainland China has become the largest single investor in Hong Kong...

...Because that's what these CITIC bonds are financing...

...Our technology controls are too weak to prevent Chinese entities from purchasing military secrets, our capital markets are so wide-open that Chinese state investors can finance military modernization on Wall Street, and our statutes governing direct foreign investment are virtually non-existent, allowing Chinese KENNETH R. TIMMERMAN wrote "All Roads Lead to China," which appeared in the March issue of The American Spectator...

...entities, so no one knows what is actually shipped out of the country...

...investment banks who are lobbying Congress against revoking China's Most Favored Nation (MFN) trading status...

...CATIC paid $3,5oo for the machine—basically, what it cost to crate the thing up," one government investigator said...

...He also warns that in the event of a default by CITIC or one of the many local Chinese state-owned banks (that are somewhat equivalent to our Savings & Loans and engage in similar39 ly risky investments), they will have to be bailed out—by the U.S...

...high technology for the firm's electronics and aerospace manufacturing operations—and that means high-level political access in Washington...

...It may help that Li Xiaopeng, the son of the Chinese premier, sits on the company's board...

...The powerful machines sold to the Chinese are invaluable for developing and modernizing nuclear weapons, and can eliminate the need for testing...

...Another major state-controlled company that has attracted Wall Street capital is China Resources (Holding), notorious among U.S...

...His daughter, Liu Chao Ying, is a managing director of China Aerospace International Holdings Ltd (CASIL), a Hong Kong subsidiary of China Aerospace Corporation...

...and China Assets Holding, Inc., the U.S...

...But Commerce officials caution that "an error in our reporting on Chinese investment" may well lead to higher figures...

...And the man who opened the door for China's entry onto the U.S...

...In exchange, Trie was granted direct access to the White House and an appointment to a presidential Commission on U.S.-Pacific Trade and Investment Policy...

...We often don't get a clue they are PRCrun until they sponsor somebody needing a visa to enter the U.S...