Monday, October 26, 2020

Hunter Biden collects millions to help the Chinese military

 Hunter Biden participated in Chinese efforts to acquire western technology. Chinese companies wanted the influence of Joe Biden so that they could get approval to acquire companies. The transfer of technology gave the Chinese Communist Party, and their military, an easy way to catch up with the U.S. military.

In particular, a Michigan company called Henniges produces dual-use anti-vibration technologies that have both military and civilian applications. Hunter Biden’s Chinese-funded investment firm partnered with AVIC, the largest military contractor in China. Together they acquired Henniges.

That deal had to be approved by CFIUS, and after approval there was a celebration of this technology transfer at the U.S. embassy, with Chinese executives, with Hunter Biden and his business partners.

The Treasury Department's Committee on Foreign Investment in the United States (CFIUS) is an interagency committee authorized to review certain transactions involving foreign investment in the United States, and certain real estate transactions by foreign persons, to determine the effect of such transactions on the national security of the United States.

The CFIUS review committee includes the Secretary of State, Secretary of Defense, Secretary of Homeland Security, and others. After a 45-day review, there is a potential 45-day investigation period, and then a potential 15-day presidential review period..

BHR (Bohai Harvest RST). and AVIC (Aviation Industry Corporation) are both majority-owned Chinese joint venture companies. They would have had to send in lots of paperwork and met with Treasury Department representatives, at a minimum. The approval could have gone up to President Obama for final approval ... but the records are not public.

AVIC was a Chinese company on the watch list, known to have stolen technology from the U.S.  F-35 fighter jet to put into their Chinese J/FC-31.

Internal BHR documents show the Chinese military contractor was able to disguise its ownership via shell corporations and formed a joint-venture with the son of the vice president Biden to facilitate the Chinese takeover of an American dual-use technology supplier.

Additional documents suggest that Hunter Biden’s Chinese-backed venture funneled money to an entity controlled by Vanessa Kerry, the daughter of then-Secretary of State John Kerry, just one month before CFIUS approved the takeover. Secretary Kerry played a lead role on the Obama - Biden CFIUS committee. The Obama administration had weakened the CFIUS review process and ignored Department of Defense objections, to technology partnerships with China since 2009.

In September 2015, the Obama-Biden administration approved the sale of  Michigan manufacturer, Henniges Automotive, to a firm connected to Joe Biden’s son, Hunter, and a Chinese military contractor that was on an American watch list because of its close ties to the People’s Liberation Army.

Hunter Biden’s equity fund, backed by the Communist Chinese government, and the Chinese contractor, Aviation Industry Corporation (AVIC), needed special approval for the deal from CFIUS because Henniges produced technology with potential military use.

AVIC entities have been sanctioned by the United States on five separate occasions since 1993, and the addition to the watch list–a major red flag—occurred less than a year-and-a-half before they co-purchased Henniges with the Biden-led Chinese joint venture known as Bohai Harvest RST (BHR). 

The fact that CFIUS approved the deal is alarming given that Henniges owns numerous facilities in the United States that are now controlled by a Chinese military front company.

Internal BHR documents show the Chinese military contractor was able to disguise its ownership via shell corporations and formed a joint-venture with the son of the vice president to facilitate the Chinese takeover of an American dual-use technology supplier.

Additional documents suggest that Hunter Biden’s Chinese-backed venture funneled money to an entity controlled by Vanessa Kerry, the daughter of then-Secretary of State John Kerry, just one month before CFIUS approved the takeover. At the time, Secretary Kerry played a lead role on the Obama-Biden CFIUS committee.

Bevan Cooney is a former Hunter Biden associate now in prison for financial fraud committed against American Indians with Hunter Biden's former business partner, Devon Archer, soon to be starting his prison sentence for the same fraud.

Cooney’s emails (and their attachments) revealed to reporter Peter Schweitzer how Hunter Biden’s BHR viewed the Henniges acquisition, which they code named “Project Hanson", as a model for future BHR “cross-border” investments.

The strategic partners and investors that Archer listed—particularly Sinopec, the Bank of China, and the China Development Bank—are all State-owned entities, so are part of the Chinese Communist Party.

One internal BHR document reveals how the Chinese military front company disguised its true ownership in a complex off-shore structure, obfuscating the fact that the Chinese military was taking over a U.S. company whose technology is on the restricted Commerce Control List.

Another internal BHR document says Devon Archer also facilitated Chinese “support” for an entity called Seed Global Health. Seed Global Health was co-founded and controlled by the daughter of Secretary John Kerry.  The politically connected Seed Global Health received more than $9 million in State Department funds without bids or competition and, in 2018, an executive at Seed Global Health was charged by federal prosecutors for violating federal conflict of interest laws and illegal lobbying.


DETAILS:
Research and development for new fighter jets can take decades, as with the F-22 Raptor and the F-35 Joint Strike Fighter (JSF). Chinese R&D has always lagged significantly behind the United States. 

China’s recent progress comes as a result of the 2015 acquisition of Henniges Automotive, a Michigan company whose anti-vibration technology is used on the F-35 (stealth) fighter, by Aviation Industry Corp of China (AVIC), the state-owned entity that produces fighter jets for the Chinese military. Who partnered with AVIC in that acquisition? Hunter Biden and Chris Heinz’s (John Kerry's stepson) BHR.

BHR is a Chinese venture capital firm in which Rosemont Seneca Thornton (the Biden/Heinz/Archer/Bulger partnership) owned a 30 percent stake, and which is majority-owned and controlled by the state-owned Bank of China. (Hunter Biden still owns 10 percent through his Skaneateles, LLC entity.)

For the 2015 transaction, a wholly-owned subsidiary of AVIC, AVIC Auto, partnered with BHR to acquire Henniges, with AVIC Auto owning 51 percent and BHR owning 49 percent. The  Chinese government owned military manufacturer ended up with 51 percent controlling interest of Henniges.

At the time of the sale, US government officials were aware that China had hacked “terabytes” of data, including F-35 technology, and made use of it in their J-20 fighter. By acquiring Henniges and their anti-vibration technology, AVIC could put that technology directly to use in the Chinese military jets.

In a press release announcing the deal, Daen Lu, described as chairman of Henniges Automotive. He is Chairman of the Board of Henniges Automotive and Chairman of AVIC Capital Co., LTD. 

So, was Lu on the board of Henniges before the acquisition, or was he inserted by AVIC?

In a March 2016 interview, BHR CEO Jonathan Li characterized the Henniges transaction as BHR’s “typical business model”:

A look at the research and development timelines of the F-35 and the J-31 illustrates the huge advantage that both hacking and the strategic acquisition of Henniges have given the Chinese.

When the Joint Strike Fighter (JSF) was originally contracted in 1996, the United States was looking to develop a next generation fighter to phase out the F-16 and the F-18, already 20 to 25 years old at the time JSF development started. Production on the F-35 began in 2006. 

The F-35 first flew in 2015, and the fighter entered service in the US military in 2015. So, 19 years from first development to production.

Military aviation experts say the latest Chinese fighter, the J-31, is strikingly similar to the F-35 – likely because the Chinese had the benefit of hacked data and their acquisition of Henniges’ anti-vibration technology.

AVIC’s J-31 (or FC-31 for international sales) started development in 2009, two years after China’s hack of Lockheed. Production began in 2015, and the first flight was in 2019. China did in 9 years what took the United States 19. China estimates that the J-31 will be combat-ready by 2022.

AVIC President Lin Zuoming says the company is looking to sell the FC-31 to air forces that are unable to buy the F-35, such as Iran and Pakistan: “The next-generation air forces that are unable to buy the F-35 have no way to build themselves up. We don’t believe the situation should be that way. The world should be balanced. Good things shouldn’t all be pushed to one party.”

AVIC entities have been sanctioned by the United States on five separate occasions since 1993 and the addition to the watch list–a major red flag—occurred less than a year-and-a-half before they co-purchased Henniges.