US Senators Strike Another Blow to Chinese Communist Party
US Senate Legislation will allow bar Chinese Companies from raising money from American investors.
The digits on the screen were changing, like in the stopwatch timer. A man in his late forties could not hide his shock when the countdown stopped eventually at 2.01 But it was not a watch. The fall of the price of the shares of Lukin Coffee Inc, that lost nearly 70 per cent was reported live. The man was Reinout Schakel, the company's chief financial officer.
Nearly twenty-four hours later, the Nasdaq Stock Market has notified Luckin Coffee, that it will delist the stock after the company disclosed that its former chief operating officer fabricated sales by about US$ 310 million in 2019. At that time, Western investors who trusted in the data falsified by Chinese, propped up the value of shares by 80 per cent.
Luckin said Tuesday that it plans to request a hearing, before a Nasdaq panel. But yesterday the chance of the Lukin company to remain listed on the Nasdaq decreased due to the approval of the sweeping new legislation by the US Senate.
The law can ultimately bar many Chinese companies from listing shares on U.S. exchanges, otherwise raising money from American investors. The bill would require Chinese firms to establish they are not owned or controlled by a foreign government. They would be required to submit to an audit which will be reviewed by the Public Company Accounting Oversight Board, the nonprofit body that oversees audits of all U.S. companies.
President Trump Prevented CCP from Getting Access to the US Retirement Fund The Senate legislation follows the decision of US President Donald Trump to ban The Federal Thrift Saving Plan, the retirement system for all federal employers that totals roughly $578 billion to invest in Chinese companies. The system, is the largest retirement fund in the US, with 5.7 million enrollees – including retired military officers. The Board of the retirement system planned to change its index to profit from an emerging market. The proposed MSCI All Country World Index includes companies as AVIC which is a producer of fighter aircraft for People's Liberation Army and is China's largest producer of ballistic missiles. The index also lists China Mobile which US barred from US government utilisation for national security index. President Trump ordered the Department of Justice and Treasury to ban the federal retirement fund from changing its index.
Economic War Against CCP According to the Cold War Scenario At first, the alarm was raised by the banker and former official at the President Ronald Reagan's National Security Council Mr Roger Robinson who was the principal architect of the victorious economic war that resulted in fall of Soviet Bloc with the Soviet Union. The goal of economic war: cut off access to the investment capital.
The concept of the strategy that defeated Moscow was two dimensional. Mr Robinson a former vice president at the Chase Manhattan Bank discovered that that annual hard currency revenue of the Soviet Union was US$ 32 billion. It was roughly the annual revenue of General Motors at that time. But the Soviets were spending an extra US$ 16 billion. The Western governments and banks provided this life support for the USSR. To cut it off, he and his team targeted the sources of the Soviet hard currency. President Reagan demanded from Western allies to deny credit to Moscow. This was a strong blow for the outdated and indebted Soviet economy.
The other dimension of the strategy was to deny Soviets the LNG pipeline from Siberia to Europe, which would make the Old Continent dependent on the Moscow gas for seventy years. And it could provide for Soviets another source for hard currency. Along with that effort, Mr Robinson's team convinced Saudi Arabia to increase oil production to decrease the price of crude oil to $US 10 per barrel. President Reagan also banned US Companies from providing any advanced technology that could drill in permafrost needed for the construction of the LNG pipeline.
All of these efforts resulted in the loss of US $ 500 million to one billion for Soviets. They could not export more than 30 per cent of the planned gas deliveries due to the delay in the construction of one pipeline and inability to build another. Before the Soviet Union collapsed it defaulted on US $96 billion in Western hard currency debt. The last Secretary of the Soviet Communist Party, Mr Gorbachev, was not able to save the Empire of Evil.
At present, US investors are financing weaponry for Chinese army. Mr Robinson emphasises that there is a similarity between the 1980s and 2020. “The US is playing the role of naïve Europeans who subsidised the construction of the Soviet gas pipelines”, he stated.
According to the official market information, China has over 700 companies in the US stock and bond markets or capital markets. It has about 86 companies listed on the New York Stock Exchange, about 62 in the NASDAQ, and over 500 in the murky, poorly regulated over-the-counter market. Among those hidden companies is Hikvision, the infamous producer of the surveillance cameras for the concentration camps where Uyghurs and other political dissidents are being persecuted. Both its parent company and Hikvision itself are on the U.S. Commerce Department Entity List.
Due to the lack or poor screening mechanism, the majority of American investors are unwittingly funding Chinese concentration camps, weapons systems for the People’s Liberation Army, and more. Unlike companies from the U.S. and Europe and everywhere else in the world, Chinese companies that list on the U.S. stock exchanges are exempt from meaningful financial oversight, the US lawyer Steve Dickinson stated.
Uncontrolled Communist China has been able to draw upon the US $35 trillion resources under the management of the US markets. This is the secret of so-called economic development of Beijing. White House economic adviser Larry Kudlow told Fox Business Network on Wednesday morning “we have to” push for more accountability from Chinese companies listed in U.S. markets. “We have to for investor protection, and we have to for national security,” Kudlow said.
“A lot of these companies, by the way, have already had scandals and cost investors a lot of money, because of their failure to be transparent in their reporting. The Chinese government forbids that kind of transparency.”
The pandemic caused by the Chinese Communist Party ended the Golden Age.
The decision of President Trump and the Senate legislation will cut off the Chinese Communist Party from access to the world most important capital market.