Heads of Blackstone and Goldman Sachs will not attend a hastily arranged meeting in Beijing later this week to discuss China’s trade war with Donald Trump and advise the Chinese government on economic policies.
According to Financial Times, Chinese Communist Party officials have invited Stephen Schwarzman, the Blackstone chairman, along with the heads of Citigroup, Goldman, JPMorgan, Morgan Stanley and former Treasury secretary Hank Paulson.
However, many of the US financial institution heads invited will not be able to attend, largely because the Chinese government organised the event at short notice. Blackstone will be represented by Jon Gray, its president, and Goldman Sachs by John Waldron, the group’s investment banking co-head. Mr Paulson will also miss the event.
The move comes as Donald Trump threatens to impose punitive tariffs on all Chinese exports, and there is clear evidence that these former CCP appeasers are weighing on the possible gains and losses of attending such a “China-US Financial Roundtable”, and meeting their old friend – Vice-chairman Wang Qishan.
Beijing has been opening up its financial sector in recent months, a step that some Wall Street bankers hope to benefit from. But as the trade war intensifies, collateral damage could spill onto Wall Street, disrupting their plans to expand in China.
“If the trade war and tariffs escalate, it will be interesting to see how regulators allow liberalization to tie in with the trade rhetoric,” says Carsten Stoehr, CEO of Greater China at Credit Suisse. “Getting management control and a 51 percent stake is a very appealing opportunity from a strategy perspective, especially if it ultimately leads to an opportunity to raise to 100 percent.”
However, according to Financial Times, several bank executives say they fear US banks may find themselves at a disadvantage because the trade war between Washington and Beijing could delay or prevent them obtaining approval to increase their Chinese stakes.
Besides, the “state traitor” Mr. Wang has become a dead mouse in the wake of corruption accusations and sex scandals. For these giants, meeting a dying mouse is no longer a matter of vital importance.
“They only put this together in the last few weeks and September is booked long in advance,” said one person familiar with the arrangements. But more viewers would like to take that as an excuse of the bankers.
Stephen Schwarzman came from a Jewish background. He is the chairman and CEO of The Blackstone Group. In 2013, Schwarzman announced a $100 million personal gift to establish a scholarship program at Tsinghua University. The program was supported by John Lawson Thornton, Executive Chairman of Barrick Gold Corporation, and Kevin Rudd, former Prime Minister of Australia.
John Thornton is a Professor and Director of the Global Leadership Program at Tsinghua University in Beijing. He retired as President of Goldman Sachs in 2003. His interest in China stretches to the 1980s, where he helped build Goldman’s presence in Asia. At the time of his retirement, Goldman had become the lead underwriter for major Chinese state-owned companies.
John Thornton was awarded the Friendship Award of the People’s Republic of China, the highest honor accorded to a non-Chinese citizen. The Chinese government also named him as one of fifteen ‘foreign experts’ who have made the most significant contribution to China’s development over the past three decades.
Hank Paulson is also China-friendly. Paulson was nominated on May 30, 2006, by US President George W. Bush as the Treasury Secretary. He was known to have persuaded President Bush to allow him to spearhead US-China relations and initiated the US-China Strategic Economic Dialogue, a forum and mechanism under which the two countries addressed global areas of immediate and long-term strategic and economic interest.
Chinese general public is apt to look at these Wall Street bankers as sly foxes. They don’t have a good say of these banking predators, especially when they act as CCP’s followers.
According to Forbes, over a seven year period between 2006 and 2013, JPMorgan hired about a hundred interns and full time employees at the request of government officials in China and Asia as part of its efforts to build banking relationships in the fast-growing region. The hiring, dubbed internally as a “Sons & Daughters Program,” enabled JPMorgan to win business that generated $100 million in revenues for the bank.
Zhicheng Jiang, also known as Alvin, grandson of Jiang Zemin, former President and Chairman of the CCP Central Committee, used to work as an analyst at Direct Private Investing of Goldman Sachs.
Wen Ruchun, the daughter of former Premier Wen Jiabao, once held a position at Credit Suisse.
In 2013, Liu Lefei, son of Liu Yunshan in charge of Communist Ideology, worked at Morgan Stanley in New York.
The hiring of two employees from China was under scrutiny of the US government earlier this year, according to the New York Times.
This May, according to a copy of the confidential government document, the S.E.C.’s antibribery unit requested from JPMorgan a battery of records about Tang Xiaoning. He is the son of Tang Shuangning, who since 2007 has been chairman of the China Everbright Group. Before that, the elder Mr. Tang was the vice chairman of China’s top banking regulator.
The agency also inquired about JPMorgan’s hiring of Zhang Xixi, the daughter of a chief official of China Railway Group. Among other information, the S.E.C. sought “documents sufficient to identify all persons involved in the decision to hire” her.
For decades, there have been too many Wall Street predators in cooperation with corrupt CCP officials to do harm to the Chinese people and cause disasters to the world’s financial sector.
Now we see some signs of changes, for the good.
In his whistle blow on September 7th, exiled billionaire Miles Kwok said he just met the Chairman of one of the three biggest investment funds in the US and won his support. “These funds will withdraw all investments from Chinese companies and any interest related to the Chinese CCP government”.
According to Miles Kwok, these three funds never act in isolation. They would join hands in their investment decisions and follow each other along. “This old friend has just finished an investigation trip to China and learned about the reactions of Chinese at different levels against my revelations. It is time now to act as he is fully determined to fight along with us.” Miles added.
Financial analyst Michael explained to the “little ants” on Lude Talks, “Miles may be referring to Capital Group, Vanguard Fund, Fidelity Fund, T. Rowe Price, Franklin Templeton, or Schroders. These funds and bankers behind them have helped defeat Hitler’s Nazi rule, build the Bretton Woods System and an international monetary system based on the US dollar. Now with a bearish view on Chinese economy, they join hands in a financial war and currency war against China’s Communist regime”.
Donald Trump is now doing a great job, not just for the Americans, but for the Chinese as well. As he is screwing up the CCP in an economic war, the western civilizations have joined hands to strangle the Communist autocratic regime off breaths.
And we are happy to see some of the former CCP appeasers start to pull back.
By Cloudy Seagail