How Mitch McConnell Sold Out American National Security To China To Amass His Own Fortune

Elder Patriot –  In his latest book, Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends, Peter Schweizer exposes the different ways that foreign governments influence American policy.  It’s an unholy exchange of money for influence.

In a previous article we recapped Schweizer’s findings about Joe Biden and how the vice president folded in the face of Chinese aggression in the South China Sea when his son was handed a $1.5 Billion investment fund by the Chinese government. 

It didn’t matter to the Chinese that the vice president’s son had neither background in private equity nor any background in Chinese finance.  They were buying V.P. Biden’s fealty not his son’s.

Ultimately the FBI arrested senior officials in one of the companies that the younger Biden was told to put the money into.  They were charged with stealing nuclear secrets.

James Comey was the Director of the F.B.I. during this time.

But, the Swamp isn’t the sole province of Democrats and corrupt prosecutors.  If it were President Trump would have the help of the Republican Party in draining it.

Sadly, Republican leadership is just as susceptible to bribery and extortion as their Democrat counterparts.

According to Schweizer, Senate Majority Leader, Mitch McConnell has his own China connection.  It begins with his wife Elaine Chao. 

Chao’s father founded Foremost Group, a shipping company that has done large volumes of business with Chinese state-owned companies.  Trump has not yet publicly admitted it but he’s probably sorry that he attempted to curry favor with McConnell by appointing Elaine Chao the Secretary of Transportation.

Here’s how McConnell’s relationship with Chao starts to stink.

Chao’s family business has deep economic and financial ties to the Chinese government.  McConnell’s father-in-law, James Chao, was a classmate of former Chinese president Jiang Zemin at Jiao Tong University.  He still serves as Foremost’s chairman.

McConnell has two sisters-in-law that also work for Foremost – Angela and Christine are the company’s deputy chairwoman and general counsel, respectively. 

Elaine Chao had worked for Foremost earlier in her career.

Foremost’s financial fortunes are closely tide to the China State Shipbuilding Corporation (CSSC) a state-owned enterprise.  Schweizer picks up the story from here:

 “The China State Shipbuilding Corporation is the largest defense contractor in China, and the projections are that by 2030, if current trends continue, they are going to surpass the U.S. Navy as far as naval capability. Basically, what happens is, the China State Shipbuilding Corporation says to the Chao family, ‘Look, we will build your ships. We will finance the purchase of some of your ships. We will provide crews for your ships. We will provide contracts for you to ship state-owned goods from state-owned companies around the Pacific. In other words, we are going to set you up in the shipping business,’ which is exactly what they do, and, in fact, James Chao — this would be Elaine Chao’s father, Mitch McConnell’s father-in-law — and Elaine’s sister, Angela Chao, actually joined the board, in 2007 and 2008, of something called China State Shipbuilding Corporation, CSSC Holdings, which is a subsidiary of the largest defense contractor in China. So you have this powerful American political family that is making U.S. policy related to China, related to trade, and other critical issues that is highly dependent upon the good graces of the Chinese government.”

The significance of this becomes apparent after McConnell accepted a gift of between five and twenty-five million dollars from his father-in-law.  It was his wife’s inheritance after her mother passed.  That gift from his father-in-law more than quadrupled his net worth overnight and made him one of the richest men in the U.S. Senate.

If that gift had been made by an unrelated party with the potential to benefit financially from the help of the Senate Majority Leader it would be considered bribery – a felony.

The gift also marks the turning point in McConnell’s positions on China policies over the past twenty years.  Schweizer’s research led him to say: Shock of all shocks, he has become increasingly soft as it relates to China.”

McConnell knows the bigger payday awaits the passing of his wife’s father.  Perhaps that is why McConnell’s policy positions were more directed at rescuing China’s moribund shipbuilding sector than in protecting U.S. national security.  By 2013 Chinese shipbuilding had returned to the lead of global vessel construction, in front of South Korea and Japan.

Significantly, this re-energized CSSC, the state-owned defense conglomerate at the heart of the Chinese government’s military-industrial complex.

Elaine Chao once commented, “ships crewed by Americans are ‘a vital part of our national security.’”  So what changed?

The Chinese government had upped the ante in exchange for continuing to do business with the Chao’s family business, Foremost ships have been constructed by Chinese government shipyards, their construction has been financed by the Chinese government, and their crews are now largely Chinese.

When Donald Trump openly criticized all of the unfair trade advantages McConnell had rubber stamped on behalf of the Chinese, including China’s theft of intellectual property, their money manipulation, and the threat to national security that losing our manufacturing base was causing, China demanded he be stopped.

This goes a long ways towards explaining McConnell’s entrenched opposition to Donald Trump both before and since his election and that continues to this day.

But, McConnell’s opposition to President Trump doesn’t stop with China.  The Senate Majority Leader has worked diligently to defeat Trump’s spending cuts and legislative initiatives including his failure to deliver Obamacare repeal that he promised to get done at the RNC:

This is all intended to neutralize Trump and create discontent among his supporters by preventing the president from getting the things he promised to.

It also goes a long way towards explaining why other members of the swamp have rolled over and allowed China to fleece America’s intellectual and business assets.  And why Congress is on the verge of passing a massive omnibus that will fund every anti-Trump initiative of the Democrats and that will kick the president’s agenda down the road.

This is the Swamp that is aligned against Donald Trump.