rescue effort has had an unintended beneficiary: Chinese companies.
“The extent and nature of PRC-owned, -invested and -connected entities among the PPP loan recipients indicate that without appropriate policy guardrails, US tax dollars intended for relief, recovery and growth of the US economy — and small businesses in particular — risk supporting foreign competitors, namely China,” wrote Emily de La Bruyère and Nathan Picarsic, the co-founders of Horizon Advisory, referring to the People’s Republic of China.
The White House is also nearing a decision that could force ByteDance, a Chinese firm, to sell the US perations of social media app TikTok over national security concerns. The Paycheck Protection Program, which was created as part of a $2.2 trillion relief package signed in March, was devised to help small businesses with fewer than 500 workers cover payrolls and overhead expenses while much of the economy was shuttered.
Among the companies highlighted in the report were Continental Aerospace Technologies, which received a loan of up to $10 million, and Aviage Systems, which received a loan of up to $350,000. The companies are owned by Aviation Industry Corp. of China, a state-owned conglomerate that the Department of Defense classified this year as a Chinese military company.
Larger loans went to businesses that spanned critical sectors such as pharmaceuticals, defense, advanced manufacturing, electric cars and information technology. In each case, the United States was indirectly funding the kinds of corporations whose owners the Trump administration regularly accuses of intellectual property theft.
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