Hunter Biden Helped Buyout Mich. Company To Create Jobs Overseas
Democrat presidential candidate Joe Biden delivered a speech in Macomb County, Michigan, on Wednesday, slamming the practice of outsourcing. Unmentioned was his son Hunter’s ties to a Chinese government acquisition of a Michigan company that is delivering jobs to China, Mexico, Europe, and South America.
“Make it in Michigan, make it in America, invest in our communities and the workers in places like Warren … Getting a good job in 2020 shouldn’t be a lottery … it should be an expectation,” Biden told American auto workers.
Biden’s pitch, though, is muffled by his son Hunter’s ties to the Chinese government.
First detailed in Peter Schweizer’s, president of the Government Accountability Institute and senior contributor at Breitbart News, 2018 New York Times bestseller Secret Empires, Hunter Biden sat on the board of directors of Bohai Harvest RST (BHR), a private equity firm he founded that was funded with $1.5 billion from the Chinese government via the Bank of China.
Specifically, Hunter Biden sat on the board of BHR while the firm jointly acquired Michigan-based Henniges Automotive with the Chinese government-owned Aviation Industry Corporation of China (AVIC) for $600 million.
Before the Obama-Biden administration approved the acquisition, AVIC had been sanctioned five times since 1993 for military technology violations, according to a report by Seamus Bruner and John Solomon. In 2014, Obama’s Commerce Department was considering sanctions for an AVIC subsidiary.
Schweizer writes in Profiles of Corruption:
When the Chinese government’s BHR was established, Hunter Biden was given a slot on the board of directors — supposedly unpaid while his father was vice president. His actual compensation cannot be known; it is confidential. [Emphasis added]
BHR, with Hunter Biden on the board of directors and Devon Archer as the vice chairman and Investment Committee member, engaged in a series of financial deals that served the strategic interests of Beijing. In one of their first deals, the firm took an ownership stake in China General Nuclear Power Corporation (CGN), a nuclear energy company. The company was charged in 2016 with espionage against the United States. Also charged was an engineer who stole nuclear secrets from the United States. [Emphassi added]
BHR also helped buy out the American precision machining company Henniges. They bought the company in a joint deal with Aviation Industry Corporation of China (AVIC), a military contractor owned by the Chinese government. Because Henniges’s technology has military application, and therefore national security implications, the deal had to be approved by an interagency committee made up of Obama-Biden administration officials. [Emphasis added]
Hunter Biden’s BHR and the Chinese government-owned AVIC’s joint acquisition of Henniges was finalized in September 2015, giving BHR 49 percent control and ACIV the other 51 percent. The acquisition is one of the largest buyouts by China of an American automotive company in United States history, Bruner and Solomon note:
The $600 million acquisition was one of the largest Chinese takeovers of an American automotive company in history, topping AVIC’s 2010 takeover of Michigan-based Nexteer Automotive for $440 million. The purchase also revealed a pattern of Chinese state-backed takeovers of sensitive American companies which included China’s controversial purchase of A123 Systems for $256.6 million in 2013 after the Obama-Biden CFIUS approved the deal.
While the deal was finalized and afterward, executives at Henniges announced manufacturing expansions in China, Mexico, Germany, Poland, the Czech Republic, and South America.
In December 2017, for instance, executives announced the opening of a nearly 80,000-square foot manufacturing plant in Suzhou, China. At the time, executives touted more jobs created — none of which included employing American workers.
“In addition to the new facility in Suzhou, Henniges has plans for further expansions in 2018, including a new manufacturing plant in South America and expanding an engineering facility in Europe,” executives wrote in a release.
Henniges executives also announced in July 2016 the opening of a manufacturing plant in Prudnik, Poland — a plan they said would create more than 500 jobs for Poles by 2021.
Weeks before the BHR-AVIC acquisition was finalized, Henniges executives announced expansions in China, Mexico, and Germany. The Gomez Palacio, Mexico manufacturing plant created about 1,200 jobs for local Mexicans, while the new Munich, Germany, offices created high-paying manager and engineering jobs.
A Beijing, China, technical and tooling facility opened in August 2015, as Henniges executives announced, and has created 60 jobs as of last year for Chinese locals.
Most recently, in February, Henniges executives announced the opening of a 35,800 square-foot Technical and Innovation Center in Mladá Boleslav, Czech Republic. Executives wrote:
The facility officially opened on December 9, with more than 20 employees. Henniges anticipates over the next five years, the facility will house nearly 75 employees, including research and development, and European management, business unit managers, sales representatives, and product experts.
Henniges operates 25 facilities around the globe, at least seven of which are located in China. At least another four Henniges plants are located in Mexico, and at least five plants are located in Europe. It is unclear how many of its 8,700 employees are still based in the U.S. The last reported manufacturing expansion by Henniges was in August 2012, when it added 200 jobs to its New Haven, Missouri, plant.
Author: John Binder