Investigative reporter Peter Schweizer, the author of Clinton Cash, completed an in-depth study of Hunter Biden’s business dealings in China. It was Schweizer who first revealed that Hunter Biden’s private equity firm received a $1 billion investment within two weeks of accompanying his father, then-Vice President Joe Biden, on an official trip there. The cash infusion came from a subsidiary of the Chinese government’s Bank of China and it wasn’t long before the investment increased to $1.5 billion.
Schweizer and his team of investigators spent two years researching cases in which families and friends of powerful politicians have benefited handsomely from those interested in “currying favor with their influential parents.” In his book, entitled “Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends,” Schweitzer provides some interesting details about Hunter Biden’s dubious dealings with China.
Schweizer reports that Hunter Biden and his business partners created a group of LLCs to conduct their deals with Chinese government-owned companies. The largest LLC was their private equity firm, Rosemont Seneca Partners, which was founded in 2009. This firm was controlled by Hunter Biden, long-time business partner Devon Archer and, lo and behold, Chris Heinz, who happens to be the stepson of former Secretary of State and Senator, John Kerry.
Rosemont also partnered with the Thornton Group, a consulting company run by James Bulger, who was named after his uncle, the notorious mob hitman James “Whitey” Bulger.
In 2010, the principles of Rosemont Seneca and the Thornton Group, headed to China to meet with business officials there. On their Chinese language website, Thornton reported the reason for the meeting was to “explore the possibility of commercial cooperation and opportunity.” It said that “Chinese executives “extended their warm welcome” to the “Thornton Group, with its US partner Rosemont Seneca chairman Hunter Biden (second son of the now Vice President Joe Biden).”
Schweitzer points out this information was not reported on the English-speaking web site.
He also notes that the meeting “occurred just hours before Hunter Biden’s father, the vice president, met with Chinese President Hu Jintao in Washington as part of the Nuclear Security Summit.”
According to Schweizer, The Bank of China founded an investment fund called Bohai Harvest RST (BHR) shortly after the Biden’s December 2013 official trip to China. BHR’s website listed Rosemont Seneca Partners, LLC as one of it’s founding partners.
Yet, “Chris Heinz claims neither he, nor Rosemont Seneca Partners, the firm he had part ownership of, had any role in the deal with Bohai Harvest. Nonetheless, Biden, Archer and the Rosemont name became increasingly involved with China. Archer became the vice chairman of Bohai Harvest, helping oversee some of the fund’s investments.”
In December 2014, BHR became an “anchor investor” in the IPO of China General Nuclear Power Corp. (CGN), a state-owned energy company involved in the construction of nuclear reactors. In April 2016, the US Justice Department would charge CGN with stealing nuclear secrets from the United States — actions prosecutors said could cause “significant damage to our national security.”
Of particular interest to CGN were sensitive, American-made components that, according to experts, resembled components used by the US on its nuclear submarines.
That Hunter Biden had no experience in China, and little in private equity, didn’t dissuade the Chinese government from giving his company a business opportunity in place of established global financial brands like Morgan Stanley or Goldman Sachs. In fact, the Chinese government wasn’t done funding deals with Hunter Biden.
Around the same time, the Schweizer team discovered that a “Chinese state-backed conglomerate called Gemini Investments Limited was negotiating and sealing deals with Hunter Biden’s Rosemont on several fronts. That month, it made a $34 million investment into a fund managed by Rosemont.
Biden had set up a “sister company” called “Rosemont Realty” which announced in August 2015 that the above mentioned “Gemini Investment was buying a 75 percent stake in the company. The terms of the deal included a $3 billion commitment from the Chinese, who were eager to purchase new US properties. Shortly after the sale, Rosemont Realty was rechristened Gemini Rosemont.”
Li Ming, Sino-Ocean Land Holdings Limited and Gemini Investments chairman, was among many in the Chinese business world to commend the deal. “Rosemont, with its comprehensive real-estate platform and superior performance history, was precisely the investment opportunity Gemini Investments was looking for in order to invest in the US real estate market. We look forward to a strong and successful partnership.”
Another said, “The plan was to use Chinese money to acquire more properties in the United States. We see great opportunities to continue acquiring high-quality real estate in the US market. The possibilities for this venture are tremendous.”
In 2015, BHR announced a deal with Chinese state-owned military aviation contractor Aviation Industry Corporation of China (AVIC). They were interested in purchasing an American company called Henniges, which “manufactures technology with military applications.”
All transactions having anything to do with national security must be approved by the Committee on Foreign Investment in the United States (CFIUS). Several government agencies were involved in the approval process. One of those was John Kerry’s State Department. The deal passed. AVIC hold a 51% stake in the new company and BHR, 49%.