Coronavirus: US lawmaker calls for review of stimulus loans to China-linked firms
- Congressman Jim Banks cites a report that suggested more than 125 Chinese companies received US$419 million via a lending programme to keep employees on payroll during shutdowns
- Loans went to businesses whose parent companies are considered by the US to be owned or controlled by the Chinese military
A US Republican congressman urged the Trump administration to review millions in coronavirus stimulus loans paid to US companies with ties to China’s aviation and defence industries, amid deepening tensions between Beijing and Washington.
The letter by Jim Banks, a congressman from Indiana, is addressed to Small Business Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin, who are tasked with overseeing the Paycheque Protection Programme.
That programme, which loans money to firms to encourage them to retain employees during the coronavirus-related shutdown, has drawn fire for technical glitches, a lack of transparency and for doling out funds to large companies with ample access to credit.
Banks called for the investigation, citing loans to companies whose Chinese parents, including aircraft manufacturer Aviation Industry Corporation of China (AVIC) and weapons maker China Aerospace Science and Industry Corporation (CASIC), were recently designated as owned or controlled by the Chinese military by the US Defence Department.
“China’s activity in … defence and aerospace, presents a direct and present threat to America’s national security. These companies’ entire mission is to make America less secure,” Banks wrote in the letter dated Wednesday. “A review of the … loans to firms affiliated with the PLA is warranted.”