U.S. lawmaker calls on Trump administration to be taught about stimulus loans to China-linked corporations

FILE PHOTO: Chinese and U.S. flags flutter ahead of a commerce meeting in Shanghai, China July 30, 2019. REUTERS/Aly SongWASHINGTON (Reuters) – A U.S. Republican congressman urged the Trump administration to be taught about hundreds and hundreds in coronavirus stimulus loans paid to U.S. corporations with ties to China’s aviation and protection industries, amid deepening tensions between Beijing and Washington. The letter by Jim Banks is addressed to Small Alternate Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin, tasked with overseeing the Paycheck Safety Program. That program, which loans cash to corporations to again them to take care of up workers correct by the coronavirus-related shutdown, has drawn fire for technical glitches, a lack of transparency and for meting out funds to gigantic corporations with noteworthy gain entry to to credit rating. Banks known as for the probe, citing loans to corporations whose Chinese of us, alongside side airplane manufacturer Aviation Alternate Corporation of China (AVIC) [SASADY.UL] and weapons maker China Aerospace Science and Alternate Corporation (CASIC), have been no longer too long ago designated as owned or managed by the Chinese protection drive by the U.S. Protection Department. “China’s project in … protection and aerospace, items an instantaneous and point to risk to The USA’s national security. These corporations’ whole mission is to manufacture The USA less genuine,” Banks wrote in the letter dated Wednesday. “A evaluate of the … loans to corporations affiliated with the PLA is warranted.” The corporations embody Continental Aerospace Applied sciences Inc, which is owned by AVIC and got $5 million to 10 million from this map. It additionally comprises Honghua The USA LLC, the U.S.- essentially based mostly subsidiary of Chinese drill rig manufacturer Honghua Crew, which is in turn owned by CASIC. Honghua got up to $1 million, in step with SBA data. Continental and Honghua did no longer straight away reply to requests for deliver and the SBA declined to deliver. A Treasury Department advisor confirmed receipt of the letter nonetheless declined to deliver further. Banks additionally cites a list suggesting that over 125 Chinese corporations bought up to $419 million by the lending program. “It’s unacceptable for the Chinese Communist Social gathering to get dangle of taxpayer funds intended to support American agencies from a disaster that the CCP enormously worsened,” he added. Reporting by Alexandra Alper in Washington; Extra reporting by Brad Heath in Washington; Bettering by Matthew Lewis

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