Guest
Column
Forward
by
Phillip Todd*
The
Baldingsworld China Data Newsletter is a daily independent
newsletter
covering insights into the Chinese economy, financial markets, and
society, as well as perspective on broader trends, stories, and
events. This
is an unbiased report giving you the real facts without any political
spin. The American Constitutionalist has already stated that the
previous administration violated the Espionage Act. You, our reader
using critical/analytical thinking, will come to your own conclusion
on this presidential candidate.
A
number of months ago, I was approached by an individual I had known
for the better half of a decade. I had known this individually
professionally and enjoyed their company and deep insight into our
overlapping professional interests. Consequently, I would not
infrequently seek out their professional opinion. They had written a
research report for a client worried about political risk that
involved background on the Biden’s in China. This individual
believed that the information that had been discovered, and with the
approval of the client, needed to make its way into the public
domain.
They
asked my help in putting the research report in the hands of press
asking them just to use the information for their own professional
purposes leaving the report anonymous. Knowing this individual
and the quality of work they do, I agreed after reviewing in detail
the report that was produced. There are a couple of key points about
the report.
First,
it is almost exclusively taken from public sources and documentation.
Everything from Chinese news reports to corporate records. The report
is immaculately cited so that anyone who wishes to replicate where a
specific piece of information was found or see the underlying
documentation can do so.
Second,
the complexity of the overall story, attempts have been made to break
down the key points about what happened, who was involved, with
timelines and indexes.
Third,
only three human sources are used in the report. Two human sources
only confirmed top line information in the acknowledgement of an
individual and no other information. The third human source was not
consulted for the story but agreed to let the information be used for
the story after the importance of the information became apparent.
For
two months I have worked on behalf of my colleague to ensure that
this report helped others report on the documented evidence of Biden
activities with regards to China. I want to emphasize a couple of
things about my own involvement.
First,
I did not write the report and I am not responsible for the report. I
have gone over the report with a fine tooth comb and can find nothing
factually wrong with the report. Everything is cited and documented.
Arguably the only weakness is that we do not have internal emails
between Chinese players or the Chinese and Bidens that would make
explicit what the links clearly imply.
Second,
I will not be disclosing the individual who did write this report.
They have very valid reasons to fear for both their personal safety
and professional risks. Throughout the years that I have known this
individual we never discussed politics. I have never heard them
criticize any political party other than the CCP. They are not a
Republican.
Third,
it was my very real wish that the press would have reported on the
documented evidence in this report and left me and the author
entirely out of this situation. I did not vote for Trump in 2016 and
will not vote for him in 2020. This information however is entirely
valid public interest information that the press has simply refused
to cover due to their own partisan wishes. I have serious policy
differences with President Trump. I am pro-immigration. I would like
to see more free trade efforts to shift trade away from China and
into partner countries from Mexico to Vietnam and India. I believe
that institution building in Asia is vital and America needs to take
that lead. However, I cannot in good conscience allow documented
evidence of the variety presented here go unreported by partisans who
are simply choosing to hide information.
Finally,
I will not be answering any questions about the report. I had no wish
to be involved in Presidential politics. I do not want to be on the
news. I will not be answer any questions about who wrote the report.
We need to return the focus to the known documented facts.
Key
Points of the Report:
Joe
Biden’s compromising partnership with the Communist Party of China
runs via Yang Jiechi (CPC’s Central Foreign Affairs Commission).
YANG met frequently with BIDEN during his tenure at the Chinese
embassy in Washington.
Hunter
Biden’s 2013 Bohai Harvest Rosemont investment partnership was
set-up by Ministry of Foreign Affairs institutions who are tasked
with garnering influence with foreign leaders during YANG’s tenure
as Foreign Minister.
HUNTER
has a direct line to the Politburo, according to SOURCE A, a senior
finance professional in China.
Michael
Lin, a Taiwanese national now detained in China, brokered the BHR
partnership and partners with MOFA foreign influence organizations.
LIN
is a POI for his work on behalf of China, as confirmed by SOURCE B
and SOURCE C (at two separate national intelligence agencies).
BHR
is a state managed operation. Leading shareholder in BHR is a Bank
of China which lists BHR as a subsidiary and BHR’s partners are
SOEs that funnel revenue/assets to BHR.
HUNTER
continues to hold 10% in BHR. He visited China in 2010 and met with
major Chinese government financial companies that would later back
BHR.
HUNTER’s
BHR stake (purchased for $400,000) is now likely be worth approx.
$50 million (fees and capital appreciation based on BHR’s $6.5
billion AUM as stated by Michael Lin).
HUNTER
also did business with Chinese tycoons linked with the Chinese
military and against the interests of US national security.
BIDEN’s
foreign policy stance towards China (formerly hawkish), turned
positive despite China’s country’s rising geopolitical
assertiveness.
Summary:
Lost
among the salacious revelations about laptop provenance is the more
mundane reality of influence and money of major United States
political figures. Ill informed accusations of Russian hacking and
disinformation face the documented reality of a major Chinese state
financial partnership with the children of major political figures. A
report by an Asian research firm raises worrying questions about the
financial links between China and Hunter Biden.
Beginning
just before Joe Bidens ascendancy to the Vice Presidency, Hunter
Biden was traveling to Beijing meeting with Chinese financial
institutions and political figures would ultimately become his
investors. Finalized in 2013, the investment partnership
included money from the Chinese government, social security, and
major state-owned banks a veritable who’s who of Chinese state
finance.
It
is not simply the state money that should cause concern but the
structures and deals that took place. Most investment in specific
projects came from state owned entities and flowed into state backed
projects or enterprises. Even the deals speak to the worst of
cronyism. The Hunter Biden investment firm share of a copper mine in
the Congo was guaranteed with assets put at risk by the larger copper
company to ensure deal flow to Hunter’s firm.
In
another instance, Bank of China working on an IPO in Hong Kong gave
its share allocation to the BHR investment partnership. They were
able to do this because even though the Hunter Biden firm completed
no notable work on the IPO, it is counted as a subsidiary of the Bank
of China. The Hunter Biden Chinese investment partnership is
literally invested in by the Chinese state and a subsidiary of the
Bank of China owned by the Chinese Ministry of Finance.
The
entire arrangement speaks to Chinese state interests. Meetings were
held at locations that in China speak to the welcoming of foreign
dignitaries or state to state relations. The Chinese organizations
surrounding Hunter Biden are known intelligence and influence
operatives to the United States government. The innocuous names like
Chinese People’s Institute for Foreign Affairs exist to “…carry
out government-directed policies and cooperative initiatives with
influential foreigners without being perceived as a formal part of
the Chinese government.”
Interestingly
the CPIFA is under the Chinese Ministry of Foreign Affairs. When the
investment partnership was struck in 2013, the Minister of Foreign
Affairs was Yang Jiechi. Yang would have been very familiar with
Hunter Biden from his days in Washington as the Chinese Ambassador to
the United States from 2001 to 2005 during which he met regularly
with Joe Biden chairing the Senate Foreign Relations Committee. Today
the same individual who oversaw institutions helping shepherd
Hunter’s investment partnership as the Minister of Foreign Affairs
is Xi Jinping’s right hand man on foreign affairs and member of the
powerful Politburo.
Most
worrying is the financial leverage this gives the Chinese state over
a direct member of the Biden family. Despite the widely
reported $1-1.5 billion of investment the reality is likely much
higher. A co-founder of the investment firm reports the total assets
under management as $6.5 billion. While this number cannot be
completely replicated, given that two deal alone were worth in excess
of $1.6 billion this number is not unrealistic at all. A 2%
annual fee on assets under management would generate $130 million
annually. Add in the 20% fee on capital gains the firm would
recognize and it is not difficult to see Hunter’s stake being worth
in excess of $50 million.
According
to Hunter’s attorney, he did not invest his $400,000 in the company
until 2017. Even assuming the veracity of this statement, this raises
a major problem. Founded in 2013, the firm had large amounts of
revenue and assets under management by 2017. In other words, his
$400,000 stake would have already been worth far more than what he
paid for it. This paltry $400,000 investment worth more than $50
million now would have realized a gain of more than 12,400% in three
years.
The
difficulty in eluding these concerns is their documentability by
anyone who cares to look. There is no potential for hacking
because it is all public record in China. Any journalist who wishes
to look can go review IPO prospectuses, news reports, or corporate
records. There is no secret method for discovering this data other
than actually looking. There is simply no way to avoid the reality
that Hunter Biden was granted a 10% stake worth far in excess of what
he paid for a firm that is literally operated and owned by the
Chinese state.
I
did not vote for Donald Trump in 2016 and have significant concerns
about his policies in areas like immigration. Having lived in China
for nine years throughout the Xi regimes construction of
concentration camps and having witnessed first hand their use of
influence and intelligence operations, the Biden links worry me
profoundly.
Whether
Joe Biden personally knew the details, a very untenable position, it
is simply political malpractice to not be aware of the details of
these financial arrangements. These documentable financial links
simply cannot be wished away.
* Phillip Todd is the foreign correspondent for The American Constitutionalist