Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries
Dear Governing Boards of American Institutions of Higher Education and Affiliates,
During this unprecedented period in modern history, American universities and colleges are on the frontlines of addressing many of the challenges presented by the pandemic. At the same time, these great institutions are at the forefront of an equally serious challenge brought on by the authoritarian influence of the Chinese Communist Party (CCP).
At the U.S. Department of State, one of our primary missions is to monitor and advocate for freedom, including academic freedom, around the world. American institutions of higher learning are the envy of the world and have always been an invaluable partner in that mission. That is especially true now as we join hands to work through myriad challenges brought on by the pandemic so that we can continue welcoming students from around the world to America’s shores. This includes an orderly resumption of student visa issuances as the situation dictates at our embassies and consulates around the world.
The Variable Interest Entity structure enables Chinese companies to sell US investors shares in Cayman Island shell companies. Investors have no visibility or control over the real companies located in China.
The road to security regulation internationalization was based on the principle that all sellers played by the same rules. The continuing emergence of Chinese state owned enterprises on the American based New York and NASDAQ exchanges is stacking the deck against American companies and intensifying the risks that investors are taking.