{"id":1974237,"date":"2023-07-15T23:11:01","date_gmt":"2023-07-16T03:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/every-foreign-company-in-china-accepts-ccp-as-business-partner-rep-gallagher\/"},"modified":"2023-07-15T23:15:51","modified_gmt":"2023-07-16T03:15:51","slug":"every-foreign-company-in-china-accepts-ccp-as-business-partner-rep-gallagher","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/every-foreign-company-in-china-accepts-ccp-as-business-partner-rep-gallagher\/","title":{"rendered":"All foreign companies in China partner with CCP, says Rep. Gallagher."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fevery-foreign-company-in-china-accepts-ccp-as-business-partner-rep-gallagher%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1974237&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"post_content\">\n\u2063 \ud834\udd7a <\/p>\n<h2>The\u200b Chinese Communist Party: A Silent Business\u200d Partner<\/h2>\n<p>The\u200d Chinese Communist Party \u200b(CCP) is not \u2063just a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/florida-gov-ron-desantis-delivers-on-promise-bans-vaccine-passports-with-executive-order\/\" title=\"Florida Gov. Ron DeSantis Delivers On Promise, Bans \u2018Vaccine Passports\u2019 With Executive Order\">government entity<\/a> \u2062in \u200cChina,\u2062 but \u200balso a partner to\u200d every\u2064 foreign \u200bcompany \u2064doing business in \ud834\udd7athe country,\u2062 according\u200c to\u200b a \u200bcongressional \u200ccommittee. Lawmakers \u200dand experts emphasized \u200cthe stark differences in corporate environments\u200d in\u200b China during \u200ca recent \u2063hearing\u2063 focused \u2063on the risks faced\u2062 by \u2064American companies operating \u200bthere.<\/p>\n<p>Rep. Mike\ud834\udd7a Gallagher (R-Wis.), \u200bchairman of \u2063the Select Committee\ud834\udd7a on the Chinese\u2062 Communist Party (CCP), stated \u2062that \ud834\udd7athere is no \u200csuch thing as a\u2063 &#8220;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/twitter-permanently-bans-president-trumps-account\/\" title=\"Twitter permanently bans President Trump\u2019s account\">private company<\/a>&#8221; \u2062in \u200dChina.\u2064 He\u2062 highlighted Chinese laws, including \u200bthe CCP&#8217;s anti-espionage and data \u2063security laws,\u2064 which \u2062give Beijing\u200d the authority \u2063to access any data, seize\u2063 assets, \u200cand \u200dtake\u2062 intellectual\u2063 property\u2062 as it pleases.<\/p>\n<p>Gallagher also\u2063 mentioned \u200bthe \u200cCCP&#8217;s practice\u200b of embedding \u2062communist \u200dparty branches or \u2062cells in various entities,\u2063 allowing officials to monitor \u200boperations \u200band\u200c access confidential \u2062information. He \u200bwarned that \u200dChina&#8217;s \u200bMilitary-Civil \ud834\udd7aFusion\u200d policy\u200b effectively turns \u200cprivate \u200bcompanies \ud834\udd7ainto \u200cextensions\u200b of \u2063the People&#8217;s \u200cLiberation \u2064Army\u2063 and communist\ud834\udd7a intelligence apparatus.<\/p>\n<p>\u2062 \u200c <\/p>\n<p>Foreign\u2063 auditing,\u2063 consulting,\u2062 and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/global-drugmakers-china-executive-promises-company-will-love-the-communist-party\/\" title=\"Drug company's China executive pledges to support Communist Party.\">due diligence firms<\/a> \u2063have\ud834\udd7a also faced\u200c pressure from\u2062 Beijing\u2062 in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-found-economy-is-recovering-much-faster-than-officials-expected\/\" title=\"Fed Found Economy Is Recovering Much Faster Than Officials Expected\">recent months<\/a>. \u2063Gallagher pointed \u2062out raids\u200c on\ud834\udd7a U.S. firms, highlighting the CCP&#8217;s \ud834\udd7aview of\u200d accurate\u2063 business information as\u2064 a threat\u2064 to its\u200b rule.<\/p>\n<h2>The \u2063Dangerous Environment\u200d for U.S. \u2062Companies<\/h2>\n<p> \u200b <\/p>\n<p>Piper \u200dLounsbury,\u2064 chief research and development\u2062 officer \u200dat\ud834\udd7a Strategy \u2064Risks, \u2063testified about \u200cthe &#8220;dangerous&#8221;\u2063 environment \u200bcreated\u2063 by\ud834\udd7a the\u200c CCP for\u200c American \u200ccompanies\u200c in China. \u2064She explained that \u2064the\u200c party&#8217;s \u200bgoals aim to replace or\u200d subjugate American firms while\u200b using\u2064 them in \u2064the near term. \ud834\udd7aLounsbury \u200chighlighted\u2063 the \u2064CCP&#8217;s\u200b reliance on\u200b theft,\u2062 coercion, and\u200c access to \u200dU.S. \u200ctechnologies,\u200b intellectual property,\u2062 and \u2064data.<\/p>\n<p> \u200d <\/p>\n<p>She \u2062shared\u2063 examples \ud834\udd7aof direct threats \u2064made by\u200b CCP \u2063officials to American \u2062CEOs,\u2063 demanding \u2063the\ud834\udd7a release \u2064of\u200b intellectual\u2063 property or\u200b risking\u200b market \u2064access. Lounsbury\u200d also described cases of blatant \u200dIP theft\ud834\udd7a and\u2062 the establishment of\u200c state-funded competitor factories by\u2062 Chinese \u200cfirms. \u2062The\u200b CCP&#8217;s IP theft has been \ud834\udd7aestimated to\u2062 cost the U.S. \u2062economy billions of \u200cdollars annually.<\/p>\n<p> \u200d <\/p>\n<p>Lounsbury\u200d expressed concerns\u200d about individual data falling\u2062 into the hands \u200bof \u2064the \u200bCCP, \u2064particularly\u200d through \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/every-foreign-company-in-china-accepts-ccp-as-business-partner-rep-gallagher\/\" title=\"All foreign companies in China partner with CCP, says Rep. Gallagher.\">identity\u200d technology service providers \u2063affiliated<\/a>\ud834\udd7a with \u2064the\u2064 Chinese \ud834\udd7aCommunist Party.\u2063 She \u2062recommended\u2063 implementing due diligence \ud834\udd7ameasures to\u200b secure\ud834\udd7a personal \u200dinformation \u2063and biometrics.<\/p>\n<p> \u200d \u2063<\/p>\n<h2>Risks\u2064 Associated with Chinese Stocks<\/h2>\n<p> \u200b\u2063 <\/p>\n<p>The \u200bhearing\ud834\udd7a also examined \ud834\udd7athe \ud834\udd7arisks faced by \u200dAmerican investors buying Chinese stocks.\u200c Gallagher\u200c warned that many\u2063 Americans \u2062mistakenly\u200c believe\ud834\udd7a they \u200b&#8221;own&#8221; Chinese\u200c stock in their retirement plans and pensions. However, these\u2062 investments\u200c often \ud834\udd7ainvolve\u200b claims on variable \ud834\udd7ainterest\u200d entities (VIEs), which do\ud834\udd7a not\u2064 provide traditional control of corporate \u200dgovernance\u2062 or \u2063claim on\u200b assets.<\/p>\n<p> \u200d <\/p>\n<p>VIEs allow \u2062Chinese \u200bcompanies to\u2064 list \u2062offshore\u2064 entities overseas, bypassing\u2063 restrictions on foreign \u200dinvestments. \u2064Investors \ud834\udd7aessentially \u2063own shares\ud834\udd7a in shell \u2064companies, facing \ud834\udd7arisks \u2063such as a lack of \ud834\udd7alegal remedy. The U.S.-China Economic\u2062 and \u200cSecurity \u2063Review Commission reported\u200b that\u2062 161 \u2063Chinese companies\ud834\udd7a listed\u2063 on U.S. stock exchanges \u2062use\ud834\udd7a the\u200c VIE structure.<\/p>\n<p>  \u200c<\/p>\n<p>Rep.\u2064 Andy\u200b Barr\u2063 (R-Ky.), a member of the Select \u2062Committee, raised questions about \u200bthese risks during the \u2062hearing.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The CCP, cautioned a congressional committee, is a partner to all foreign firms operating in China. Experts and lawmakers emphasized the stark contrast in corporate settings, stressing that the concept of a &#8220;private company&#8221; does not exist in China. Rep. Mike Gallagher (R-Wis.) highlighted these differences on Thursday.<\/p>\n","protected":false},"author":252,"featured_media":1974238,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1974237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1974237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/252"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1974237"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1974237\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1974238"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1974237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1974237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1974237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}