In the morning press on October 19, Lude Media exposed more startling news about the conspiracy of Joe Biden (the Vice President of Obama Administration) and the CCP (Chinese Communist Party), source was from the “Three Hard Drives of Hunter Biden”. In the following paragraphs, I am going to elaborate the details on the sacrifice of LI Hui who is a real national hero and patriot of China.
In this morning press, Lude revealed in details how Joe Biden sold out 36 CIA informants to the CCP. These informants were asked to attend a morning meeting and were shot one by one to death in the conference room upon their arrival. They got no chance for trials or appeals, except of a signature on the verdicts according to the CCP’s Regulation on the Implementation of the Law of the People’s Republic of China on Guarding State Secrets. The U.S. government has detailed information of these informants, including their photos. The New York Times reported this shocking event on May 20, 2017 titled as “Killing C.I.A. Informants, China Crippled U.S. Spying Operations”. This report has some intentional misleading information. For example, the time should be 2012 and after, not between 2010 and 2012.
Lude specifically mentioned LI Hui, a young man from the CCP’s Ministry of State Security. Mr. Li was an American-born-Chinese,working in the security department and also got killed in this tragedy. According to the news , LI hui was believed to have been arrested during the Chinese Spring Festival in 2012. He confessed to the interrogator that he had joined the American CIA to overthrow the brutal regime of the Chinese Communist Party, and he won secret praise from the interrogator. His legendary experience is not well known to the public. One of his high school best friends, who was studying in the United States, was a child of a Chinese senior official that very much trusted by Hu Jintao, the Chairman and General Secretary at that time. Because of this, LI Hui was recommended as a secretary of LU Zhongwei, the Deputy Minister of National Security and was repeatedly elected as an outstanding member of the CCP. Under normal circumstances, spies are not killed when caught, but kept as prisoners in exchange. However, LI was shot in public, thus you can imagine how much destructive force he could have done to the CCP. He was said to have installed eavesdropping software in the red confidential machine in Zhongnanhai (headquarters of the CCP), allowing top-secret phone calls of the CCP to be tapped for a long time. The US was well aware of the conversations at the highest levels of Chinese leadership.
Mnuchin Team Seeks Two-Year Reprieve for CCP Fundraising Here — A Gambit to Run Out the Clock on the Trump Presidency?Committee on the Present Danger: China Calls for End to Non-Compliant PRC Firms’ Access to U.S. Cap Markets Not Later Than January 1, 2021
WASHINGTON — Last month, Senator Marco Rubio called on Treasury Secretary Steve Mnuchin in his role as the chairman of the Presidential Working Group on Financial Markets (also known as the Plunge Protection Team or PPT) to put real teeth into recommendations requested by President Trump in the wake of the Chinese Communist Party’s snuffing of freedom in Hong Kong. In particular, the Chairman of the Senate Intelligence Committee declared: “Firms listed on American exchanges whose audits are shielded from inspection by the PCAOB should be deregisteredby the SEC subject to a warning period under which such firms can come into compliance” (emphasis added).
Unfortunately, but unsurprisingly given Sec. Mnuchin’s close ties to Wall Street and those of other members of the PPT — notably, Securities and Exchange Commission Chairman Jay Clayton and Federal Reserve Board Chairman Jay Powell — the Working Group will reportedly Solomonically split the proverbial baby: According to an article in the Wall Street Journal, Team Mnuchin will recommend that CCP companies failing to meet U.S. standards for audits be “delisted” (a much less consequential step than deregistration), but not until 2022. Other Chinese companies traded, but not listed, in U.S. markets would — apparently by design — not be covered. The Working Group will also reportedly recommend allowing “co-audits” of Chinese companies, rather than having them be subject to a direct PCAOB audit — as is required for all American companies in our markets.
The Journal article makes clear that the practical effect of such a course of action would be to acknowledge the inherent danger for investors of putting their money into potentially fraudulent Chinese companies. Yet, such companies would be allowed to continue soliciting and attracting funds in America’s capital markets for another two years. There is no rational basis for affording the CCP an opportunity to obtain potentially a trillion dollars or more — on top of the $3 trillion it is already estimated to have garnered in the U.S. equity and debt markets — all without having to play by our rules.
It would be bad enough if the certain result of such an arrangement were simply to set up American private and public investors for more fraud and losses at the hands of the Chinese Communist Party, d.b.a. non-transparent corporations. Worse yet, a succession of senior U.S. officials — including Secretary of State Mike Pompeo (for example, here and here), Attorney General William Barr, Labor Secretary Eugene Scalia, National Economic Council Director Lawrence Kudlow and National Security Advisor Robert O’Brien (here and here) — have warned that, in addition to such undisclosed material financial risks, these companies can also pose threats to our national security and human rights values. President Trump has made similar points (for example, here).
A possible explanation for this gambit that would allow CCP companies to continue perpetrating such harm for two more years is the expectation that Donald Trump will not be president then and in a position to implement such a restriction on Communist China’s access to further American underwriting. Such a calculation would, of course, be disloyal to the president in whose Cabinet Mr. Mnuchin serves and contrary to the national interest.
The Committee on the Present Danger: China believes the reported Mnuchin recommendation is unacceptable in its present form and must be modified as follows:
All eligible Chinese companies traded in American capital markets should be required to conform to U.S. securities laws and regulations, just like their U.S. corporate counterparts and competitors — not just those “listed” on our markets, or even those “registered” there.Chinese Communist companies that are ineligible for access to our capital markets include: those subject to sanctions by any entity of the U.S. government; corporations identified by the Department of Defense as “Communist Chinese military companies,” whether they are doing business in this country or elsewhere; other CCP companies that pose “material risks” by threatening U.S. national security and/or human rights values (which should be identified as such by the SEC); Chinese “A shares” — i.e., equities of CCP companies listed on PRC exchanges, then brought into U.S. markets without any national security — or human rights-related due-diligence on the parts of American index providers and their Exchange-Traded Fund sponsors.All eligible Chinese companies must be audited directly by U.S. PCAOB, not by some “co-audit” arrangement with an ostensibly “independent” firm — whose personnel and assets may well be at the mercy of, or subject to influence by, the Chinese Communist Party. This gambit is really yet another preferential Wall Street-engineered “work-around” designed to accommodate the CCP’s unyielding insistence that the PCAOB not be permitted to directly audit Chinese companies.
Other initiatives that should be part of a sound U.S. policy towards Chinese access to American capital should include:
Imposing Discipline on Private Pension Funds: The Department of Labor should institute the necessary regulatory changes to prevent Chinese companies that are non-transparent or otherwise non-compliant with federal securities laws, sanctioned by the United States, affiliated with the People’s Liberation Army, engaged in advanced weapons manufacturing and/or serve as corporate enablers of CCP human rights and national security abuses from being eligible for investment by our country’s private pension funds. Over 240 leaders and patriots recently urged Sec. Scalia to take this step.Prohibiting the issuance of Chinese (and Russian) sovereign bonds: The bond offerings of these authoritarian governments — America’s two principal adversaries — being added to the fixed income portfolios of scores of millions of unwitting American investors is as fiduciarily unsound as it is outrageous from a national interest perspective. (This is especially the case as China has been permitted to default with impunity for decades on its sovereign bonds owed to thousands of retail American investors and their families, stemming from the pre-World War II period.)
For example, CalPERS alone is holding some $440 million in Russian sovereign bonds (OFZs). The non-transparency of foreign bond holdings of the states makes it difficult to know the extent to which the American investor community is underwriting — with discretionary cash — the global operations of the CCP and the Kremlin. This is a clear hazard to U.S. investors, as well as to the country at large, and it should be brought to an immediate halt. (Fortunately, CalPERS just acted as the Committee on the Present Danger: China had urged: It terminated this week Chief Investment Officer Yu Ben Meng, a CCP Thousand Talents Program operative who, during his time as CalPERS CIO, had increased substantially the fund’s stake in problematic Chinese companies.)
Terminating “Regulation S”: Edward Kinsey, the Chief Financial Strategy Officer and Senior Advisor to the Under Secretary of State for Economic Growth, Energy and the Environment, Keith Krach, urged this action in official comments recently submitted in response to a July 9, 2020 SEC Staff Roundtable on Emerging Markets. (See here for highlights of Roger W. Robinson’s presentation at this event.) This regulation affords preferential treatment with respect to U.S. securities law and regulations for offerings on foreign exchanges that can be sold on U.S. ones after a prescribed time.Formally withdrawing now from the May 2013 bilateral Memorandum of Understanding that allows Chinese companies to ignore U.S. securities laws and regulations. Under Secretary Krach signaled last month that the Trump administration is poised to take this step. Presumably, it would happen under Sec. Mnuchin’s plan, but not until at the earliest the end of 2021. Designating the CCP as what it is: a Transnational Criminal Organization (TCO). Over 70 organizations and 500 prominent Americans and other patriots have recently urged Attorney General Barr to take this action. A TCO designation is fully justified in light of Gen. Barr’s own public statements and those of FBI Director Wray, which amount to public indictments of the Chinese Communist Party’s serial illegal behavior
The Committee on the Present Danger: China urges President Trump to adopt this comprehensive plan — not the bait-and-switch Secretary Mnuchin and the PPT seem to have in mind — and, thereby, grant no reprieve to the CCP for its ongoing efforts to raise money here that will help the PRC destroy our country.