Biden’s Ties To China Heat Up
In 2013, Vice President Joe Biden brokered a deal with China that gave the country access to US markets without having to comply with US compliance regulations that US companies had to comply with. John Solomon at Just the News reported:
Since 2013, Chinese companies have been allowed to participate in U.S. stock and bond exchanges without having to fully comply with the same Sarbanes-Oxley Act accounting practices and risk disclosure required of American companies.
The concession was made in a little-noticed Memorandum of Understanding executed seven years ago by the Public Company Accounting Oversight Board (PCAOB), a nonprofit regulator empowered by the Sarbanes-Oxley law to ensure U.S. investors are protected from making bad investments because of faulty audits or financial information.
The agreement was reached in May 2013 after Chinese leaders pleaded for improved access to American capital markets in multiple meetings with then-Vice President Joe Biden, transcripts from the Obama administration’s archives show.
The Sarbanes-Oxley legislation cost US companies millions, if not billions, in compliance costs since put in place after the Enron collapse. For some reason, Biden thought Chinese companies should not have to comply with these requirements that are required of American companies to ensure accurate financials and key controls throughout company operations worldwide. These controls are audited at least annually and at a significant cost to the entity. There are also significant costs to prepare for these audits.
Rather than ensure China’s companies were at least as accurate in their reporting and as well-controlled, Biden gave Chinese companies a pass on the same requirements mandated of US companies. This deal allowed Chinese companies to obtain billions, if not trillions, in capital not available in China.
Biden’s son Hunter has a special relationship with the Communist nation. As revealed in Peter Schweizer’s book Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends:
What Hunter Biden, the son of America’s vice president, and Christopher Heinz, the stepson of the chairman of the Senate Committee on Foreign Relations (later to be secretary of state), were creating was an international private equity firm. It was anchored by the Heinz family alternative investment fund, Rosemont Capital. The new firm would be populated by political loyalists and positioned to strike profitable deals overseas with foreign governments and officials with whom the US government was negotiating.
In December 2013, Hunter traveled to Beijing aboard Air Force Two with his dad, VP Joe Biden. Coincidently (if you believe in coincidences) ten days later, “Hunter’s company, Rosemont Seneca, became a partner in a new investment company backed by the state-owned Bank of China.” They called the new company, Bohai Harvest RST (BHR).
Representatives of the Biden family have denied any connection between the vice president’s visit and Hunter’s business. However, a BHR representative told The New Yorker earlier this year that Hunter used the opportunity to introduce his father to Chinese private equity executive Jonathan Li, who became CEO of BHR after the deal’s conclusion.
Today China’s economy is imploding. Its key market and 25% of its GDP, the property investment market, is failing. China has off-balance sheet liabilities in the trillions that are not accurately reported and the entities involved in this business are underwater and failing.