The Payroll Protection Program was funded in coronavirus stimulus packages, but it ultimately sent hundreds of millions to companies tied to China, the origin of the COVID-19 pandemic.
Businesses linked to the Chinese Communist Party, and therefore subject to force technology transfer to the government in China, received at least $192 million and as much as $419 million in initial PPP loans from the U.S. Small Business Administration, JusttheNews.com reported.
The data comes from a Horizon Advisory report "China's Protection Racket" released last August, and the large range is a function of the broad way PPP loans are publicly disclosed. PPP loans are listed in ranges such as $5-$10 million.
The report highlighted the lack of congressional oversight of at least 125 CCP-connected firms able to "take advantage of the international disaster" by benefiting "directly from U.S. investment and relief measures."
China also maneuvered to benefit from the 2008 financial crisis bailouts, authors of the report Emily de la Bruyere and Nathan Picarsic wrote, noting China purchased depreciated assets, captured strategic market share, and positioned itself in emerging markets.
"U.S. federal funds intended for COVID-19 recovery and emergency support of U.S. small businesses are benefiting a host of companies owned or invested in by entities based in the People's Republic of China," the report concluded.
- Defense companies.
- Semiconductor producers.
- Media outlets.
- Medical technology.
- Auto manufacturers.
The report noted the irony of the companies most in need of PPP loans at times were passed over for entities tied to China.
"The PPP program did not reach every small business that has been harmed by the COVID-19 crisis," it read, adding, "many U.S. small businesses that did not receive funding have closed up shop or permanently shrunk their work force."
"Many of these firms, by virtue of their Chinese government support and connections to large PRC-based conglomerates, conceivably could access sources of capital from public or private markets to support their U.S. operations," the authors continued.
"To date, Congress has not conducted any meaningful oversight over China's access to PPP loans," they write. "Nor has it restricted access to companies with military ties to Beijing, those that have been accused of IP theft and other predatory behaviors, or those that have been documented as national security risks."
Criticisms of the PPP program have noted the potential for waste, fraud, and abuse, some of which is still undetectable, JusttheNews reported.