Saturday, May 18, 2024

REPORT: Chinese Companies Got Millions in PPP COVID-Relief Grants

'Without appropriate policy guardrails ... there is a significant risk that funds will support foreign strategic rivals...'

Even as President Donald Trump was promising to hold China accountable for its role in the spread—and possible creation—of the novel coronavirus, one of his signature economic stimulus programs was funneling big bucks to the communist super-power.

A new analysis revealed that more than 125 Chinese companies received between $192 million and $419 million from the Paycheck Protection Program following the disbursements in the multi-trillion-dollar CARES Act, according to the Epoch Times.

The report was released by Horizon Advisory—an “independent strategic consultancy” group for investors and policymakers that specializes in geopolitical and economic matters—which used publicly available data from the Treasury Department.

“[W]ithout appropriate policy guardrails and monitoring of U.S. tax dollars intended for relief, recovery, and growth of the U.S. economy, there is a significant risk that funds will support foreign strategic rivals, namely China,” it determined.

It comes as lawmakers in Congress haggle over another spending bonanza in the CARES Act sequel—in which House Democrats have sought, shockingly, to use election-integrity as a bargaining chip.

The Trump administration also has pushed for its own pork in the appropriations bill, including a brand-new FBI building.

However, both parties seem to have fallen short of offering due oversight when it comes to being good stewards of taxpayers’ coffers both present and future.

The report indicated that at least 32 of the Chinese-owned firms, which included state-owned ones, received more than $1 million.

Among them were those supporting Chinese military development and other national security threats to the US, as well as communist propaganda media outlets.

Others may have been less sensitive for security purposes but nonetheless posed an economic threat in the wake of Trump’s hard-negotiated trade agreements.

It included companies in the aerospace, pharmaceuticals and semiconductor manufacturing industries, which China is seeking to develop in its bid for global dominance.

The report indicated that despite the short-term benefit that the funds may have offered for the US economy, the long-term effect of the cash grab going outside the US would be more harmful than beneficial.

“Their PPP participation saved U.S.-based jobs, but likely at the expense of other U.S. small businesses,” it said.

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