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As he was sewing up the Democrat nomination this spring, Joe Biden surprised many in foreign policy circles by publishing an essay arguing it was time to “get tough with China” and to stop its “robbing the United States and American companies of their technology and intellectual property.”
For Biden, a four-decade advocate of trade and friendly relations with Beijing, it was a stunning turnabout that signaled the Democrat was concerned President Trump was winning the election-year battle over U.S.-China policy as tensions in the South China Sea, a trade war, and growing espionage cases created a Cold War-like atmosphere with China.
But for U.S. security experts, it was remarkable for another reason: An investment fund named Bohai Harvest RST (BHR) partly owned and directed by Biden’s son, Hunter, and Secretary of State John Kerry’s stepson, Chris Heinz, had just a few years earlier played a vital role in facilitating the sale of the Michigan-based auto parts maker Henniges Automotive to one of China’s main military aircraft makers, Aviation Industry Corporation of China or AVIC.
That 2015 transaction approved by the Obama administration and its Committee on Foreign Investment in the United States (CFIUS) came just 15 months after the United States publicly added one of AVIC’s subsidiaries to a Commerce Department blacklist (known as the “Entity List”) and just months before the Obama administration resumed patrols in the South China Sea because of increased Beijing military aggression in the region, where AVIC-built military jets partake in China’s activities.
The timing has left many, including Senate Finance Committee chairman Chuck Grassley (R-Iowa), questioning whether the CFIUS decision whitewashed security concerns because the vice president’s son was involved in the transaction. Those concerns were heightened this June when the Pentagon listed the entire AVIC conglomerate on a list of companies subject to future sanctions because of its ties to the People’s Liberation Army…
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