The Great Wall Street
The Great Wall Street
Recently, a top Chinese university professor named Di Dongsheng has been making waves for saying that the CCP has been able to get their way on key negotiations because “we have people at the top.” Professor Di goes on to say that “for the past 30 years, 40 years, we have been utilizing the core power of the United States,” and that “core power” is Wall Street.
Wall Street has been Beijing’s most consistent ally in Washington, lobbying so much for the CCP that senior Trump trade advisor Peter Navarro called Wall Street lobbyists “unregistered foreign agents.” From pushing Bill Clinton to allow China to join the WTO – a decision that led to the outsourcing of millions of manufacturing jobs – to getting Barack Obama not to label Beijing a currency manipulator, to trying to convince Donald Trump to enter into trade deals with China, Wall Street has consistently lobbied for Chinese interests, even acting as a middleman between the U.S. government and the CCP to help deals get through. In some cases, Wall Street bankers join the government and assist the CCP directly, such as in the case of Goldman Sachs executive Hank Paulson, who had visited China 70 times before becoming George W. Bush’s Treasury Secretary.
Wall Street has also given the CCP critical financial assistance in its development. Wall Street has allowed numerous Chinese companies to list on the New York Stock Exchange without undergoing the financial auditing that American companies have to undergo (and has fought U.S. government efforts to tighten stock exchange regulations) and has added extra weight to Chinese companies on their index funds.
They’ve also completely disregarded American business practices while in China, be it by hiring the children of top Communist officials in exchange for market access or by turning a blind eye to human rights violations or national security threats from companies they collaborate with.
What’s in it for these Wall Street Companies? Access to China’s $45 trillion financial market, which the CCP claims that it will begin opening up in 2020, and where companies like BlackRock, JP Morgan, and Goldman Sachs will likely invest $1 trillion over the next few years.