President Biden is in over his head. He’s made a mistake that’s come back to haunt him.
And now Congress has a big decision to make because of how badly Joe Biden just got played like a fiddle.
Recent investigations have revealed that several blacklisted Chinese companies have been operating under the guise of American entities to circumvent U.S. sanctions, according to a report by The Wall Street Journal (WSJ). These companies, linked to the Chinese Communist Party (CCP) and flagged as potential national security threats, have found ways to continue their business within the U.S. despite governmental efforts to curtail their activities.
The Biden administration in recent months has announced efforts to crackdown on the companies who are trying to skirt the black-listings and sanctions, but new reports have highlighted concerns that Congress is going to have to step in to strengthen the sanctions of the companies in question.
The U.S. government has intensified measures against Chinese firms like Hesai Group, SZ DJI Technologies, BGI Group, Huawei, and ByteDance, all of which have managed to either operate directly or collaborate with American-based companies to sell products and services domestically. This ongoing evasion has raised significant concerns about national security and regulatory efficacy.
🇺🇲🇨🇳“Americans will become poorer because Chinese will have the best jobs, best companies, best education and the global reserve currency”
And do you know why?
Because the moment when the USA allowed them to do "business" from education, that's when the decline began. You must… pic.twitter.com/rRUvY6OqCb
— Megatron (@Megatron_ron) March 31, 2024
Derek Scissors, a former commissioner of the U.S.-China Economic and Security Review Commission, commented on the adaptability of these companies: “Chinese firms take a blow but then adjust business strategy and are able to move in another direction.”
In December 2023, American Lidar, an auto technology company, registered in Michigan without disclosing its parent company, the Chinese-based Hesai Group. Hesai’s lidar technology, which creates three-dimensional maps using laser sensors, has raised alarms within the intelligence community due to its potential use in data collection for Beijing. Just a month later, the Department of Defense (DOD) blacklisted Hesai as a Chinese military entity, causing a significant drop in the company’s stock, from which it has not fully recovered.
Hesai maintains that its lidar technology is incapable of surveillance as it does not save or transfer data. Nonetheless, the company’s plans to build a manufacturing plant in Michigan have stalled.
Hesai spokespersons explained that the “American Lidar” name was intended to reassure consumers of the products’ U.S. origins. In May, Hesai sued the DOD, arguing that there were no grounds for its designation as a Chinese military entity or CCP affiliate.
Similarly, BGI Genomics, a subsidiary of the BGI Group, was added to the DOD’s blacklist in 2022. BGI Genomics claims no access to private data of its American clients or connections with the Chinese military or government. However, in 2023, BGI Americas, another subsidiary, rebranded itself as Innomics. This move was seen by several federal lawmakers as an attempt to “avoid regulatory scrutiny,” leading to calls for its addition to the DOD blacklist alongside BGI Genomics.
Congress is currently debating new legislation to ban Chinese drone manufacturer DJI entirely from the U.S. market. Concerns have been raised that DJI could be storing data and transferring it to Beijing, despite the company’s denials. Prior investigations indicated DJI’s receipt of CCP funding and its involvement in surveillance activities against ethnic minorities in China’s Xinjiang province.
In 2023, DJI brokered a deal with Randall Warnas, a former employee and American citizen, to continue selling its technology in the U.S. Warnas’s startup, Anzu Robotics, secured technology licenses for DJI drones, claiming that all data would be stored in the U.S. Warnas emphasized compliance with U.S. regulations, stating, “The whole intention was to comply with the United States’ request to not have Chinese drones operating in the U.S.”
Despite these assurances, some lawmakers remain skeptical. Representative Elise Stefanik, who has been instrumental in pushing for the ban on DJI, described the deal as a “desperate attempt” to bypass sanctions.
The ongoing struggle between U.S. regulatory efforts and the evasive tactics of blacklisted Chinese companies underscores the complexities of international business and national security. As the U.S. continues to tighten its scrutiny, the adaptive strategies of these firms pose ongoing challenges to enforcement and regulatory frameworks.
#BREAKING #USA #China China dumps products on market at unfairly low prices. – The President of the United States, Joe Biden
"For years, the Chinese government has poured public money into Chinese companies across a range of industries. Steel and aluminum, semiconductors,… pic.twitter.com/hGNTs5miSM
— The National Independent (@NationalIndNews) May 14, 2024
All of this highlights how complicated the U.S. relationship has been with China in recent years, and there’s valid criticism for the Biden administration’s handling of that relationship as compared to Donald Trump’s tenure.
On Joe Biden’s watch, it seems the Chinese Communist government has only grown more and more emboldened, which does not bode well for the national security of America right now. It’s hard to imagine that a second Joe Biden term would change that one bit.
The Conservative Column will keep you updated on any major foreign policy news.
