In 2013, Joe Biden gave a valuable present to China. They could take advantage of our markets, but would not be bound by our reporting regulations.
The Chinese were grateful and they gave Hunter Biden $1.5 billion dollars to invest just a few months later.
But, now with China in deep financial trouble over Evergrande, the chickens may be coming home to roost for investors in the United States.
John Solomon at Just the News reported:
Since 2013, Chinese companies have been allowed to participate in U.S. stock and bond exchanges without having to fully comply with the same Sarbanes-Oxley Act accounting practices and risk disclosure required of American companies.
The concession was made in a little-noticed Memorandum of Understanding executed seven years ago by the Public Company Accounting Oversight Board (PCAOB), a nonprofit regulator empowered by the Sarbanes-Oxley law to ensure U.S. investors are protected from making bad investments because of faulty audits or financial information.
The agreement was reached in May 2013 after Chinese leaders pleaded for improved access to American capital markets in multiple meetings with then-Vice President Joe Biden, transcripts from the Obama administration’s archives show.
The Sarbanes-Oxley legislation cost US companies millions, if not billions, in compliance costs that were put in place after the collapse of ENRON. Even though American companies all had to comply with this law, Biden did not think that China should have to do the same.
These controls were put in place to give warnings to investors when a company was hitting hard times. But, since Chinese companies did not have the same requirements, investors did not find out until it was too late that Evergrande was on the verge of collapse.
Rather than ensure China’s companies were at least as accurate in their reporting and as well-controlled, Biden gave Chinese companies a pass on the same requirements mandated of US companies.
This deal allowed Chinese companies to obtain billions, if not trillions, in capital not available in China.
Biden’s son Hunter has a special relationship with the Communist nation. As revealed in Peter Schweizer’s book Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends:
What Hunter Biden, the son of America’s vice president, and Christopher Heinz, the stepson of the chairman of the Senate Committee on Foreign Relations (later to be secretary of state), were creating was an international private equity firm. It was anchored by the Heinz family alternative investment fund, Rosemont Capital. The new firm would be populated by political loyalists and positioned to strike profitable deals overseas with foreign governments and officials with whom the US government was negotiating.
In December 2013, Hunter traveled to Beijing aboard Air Force Two with his dad, VP Joe Biden. Coincidently (if you believe in coincidences) ten days later, “Hunter’s company, Rosemont Seneca, became a partner in a new investment company backed by the state-owned Bank of China.” They called the new company, Bohai Harvest RST (BHR).