Paycheck Protection Program: Chinese-Owned Companies Extract Millions

paycheck protection program

Several Chinese-owned organizations extracted hundreds of millions of dollars against the Paycheck Protection Program worth $660 billion. The protection program was created as a lifeline for several small businesses owned by citizens of United States. These businesses are currently struggling to make ends meet during a coronavirus pandemic.

As per a review that has been made publicly available with regard to loan data by Horizon Advisory, around $192 to $419 million has been extracted by 125 companies either owned or invested by Chinese people. Many loans were sizable. But around 32 companies got a loan of over $1 million. The total amount of loans together made $180 million.

The report mentioned the fact that these companies are currently helping many people in the United States to retain their jobs. However, it also states that several businesses among these had access to different forms of capital through both private market and public market to support the operations in America.

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Chinese companies might soon be out of the Paycheck Protection Program

According to the Treasury Department, the protection program has kept at least 50 million people employed in the US right now. As per reports, there will be a new provision of this bill introduced by the Senate Republicans that states that they would ban any business partially owned by Chinese companies or have any Chinese residents among the board of directors. These companies will not be able to get loans from the next round.

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Nathan Picarsic and Emily de La Bruyère, the founders of Horizon Advisory warned that without proper policy guardrails, that US tax specified for relief and recovery of the economy is going to the top foreign competitor – China.

The Trump government has been hawkish towards China, which has increased due to the coronavirus outbreak. According to Trump, China has lied and withheld information and that has led to taking aggressive decisions towards them.

Attorney General William Barr raises concerns about China

William Barr, Attorney General, recently warned that China was trying to make socialism stronger than capitalism. He added that they want to replace the dream of America with a Chinese solution. China is not hiding their strength nor biding at this time. But according to the eyes of the communist ruler, the time of China has started. He added that the People’s Republic of China is engaging with economic warfare.

The government plans to seize the global economy and go pass America and rise as a technological power. The Attorney General also said that China is ambitious and they follow illegal means like theft, industrial espionage, cyber-attacks, extortion, malign influence activities, and more.

Currently, there is a lot of tension between China and the US. It increasing all the more due to the ranging issues between China and Hong Kong. Moreover, the Chinese consulate closing down in Houston was another move to create tensions. The consulate was alleged to be spying on the US operations.

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