China spent over USD 5.5 mn at Trump's properties during his tenure as President

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06 Jan 2024, 20:06

The Chinese government and its state-controlled entities spent over USD 5.5 million at properties owned by Donald Trump while he was in office, CNN reported quoting financial documents cited in a report from House Democrats released on Thursday.

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It reported that it was the largest total of payments made by any single foreign country known to date.
The payments also included millions of dollars from China's Embassy in the United States, a state-owned Chinese bank accused by the US Justice Department of helping North Korea evade sanctions and a state owned Chinese air transit company.

Accounting records from Trump's former accounting firm, Mazars USA, were obtained by Democrats on the House Oversight Committee.
China is one of 20 countries that made at least USD 7.8 million in total payments to Trump-owned businesses and properties during the former president's stint in the White House, including his hotels in Washington DC, New York and Las Vegas, the report states.

CNN reported that the documents offer additional evidence of the rare practice of foreign governments spending money directly with businesses owned by a sitting president but are not a complete record of all foreign payments made to Trump's businesses during his time in the White House.
At the time, Trump's lawyer said the former president planned to donate foreign profits from his hotels to the US Treasury Department. However, the amount reportedly donated by the Trump Organization in 2017 and 2018 falls well short of estimated foreign payments that were made to its properties.

Trump refused to divest himself of corporate assets and properties before taking office, meaning he could still profit from his various businesses with little transparency.
Democrats say the additional accounting records raise new questions about possible efforts to influence Trump through his companies while he was in the White House.

As an example, committee Democrats point to the fact that Trump declined to impose sanctions on the Industrial and Commercial Bank of China (ICBC), a state-owned entity that leased property at Trump Tower in New York.

A Securities and Exchange Commission filing from 2012 shows that the Chinese bank's base rent paid was USD 1.9 million and documents produced by Mazars confirm the bank stayed in Trump Tower through 2019 at least.

In 2016, the Justice Department accused the bank of conspiring with a North Korean bank to evade US sanctions.

But upon taking office, Trump did not sanction ICBC despite calls from Republican members of Congress to "apply maximum financial and diplomatic pressure" by "targeting more Chinese banks that do business with North Korea," House Oversight Committee Democrats wrote in a report summarizing the contents of the Mazars USA records.

Asked about China's payments to Trump-owned properties, Chinese Embassy spokesperson Liu Pengyu told CNN, "China adheres to the principle of non-interference in internal affairs and does not comment on issues related to US domestic politics."
"At the same time, I want to stress that the Chinese government always requires Chinese companies to operate overseas under local laws and regulations. China-US economic and trade cooperation is mutually beneficial. China opposes the US politicizing China-US economic and trade issues," Pengyu added.

The Trump Organization said it donated over USD 450,000 in estimated profits from foreign government patronage to the US Treasury over the time of Trump's term. The company also worked to track all foreign government business across its entire portfolio and did not make new business investments overseas while Trump was in office.
In a statement, Eric Trump said that the former president was tough on China regardless of any business interests.

"There is no President in United States history who was tougher on China than Donald Trump ... a President who introduced billions and billions of dollars worth of tariffs on their goods and services," Eric Trump said.

Meanwhile, the democrats criticised the Republican leader and argued that Mazar documents show Trump repeatedly violated the US Constitution's Emoluments Clause, which prohibits a president from receiving an "emolument," or profit, from any "King, Prince, or foreign State" unless Congress consents.

Yet despite ethical concerns that have been raised about Trump's lack of adherence to constitutional norms that were embraced by his predecessors, legislation to enforce the Emoluments Clause has gone nowhere in Congress.

The committee, which has investigated Trump's businesses and his lease of the Old Post Office in Washington from the US government that housed his hotel, was provided the records following a years-long court battle that ended in a settlement in 2022.

Many of the documents in the subset released Thursday have not been previously made public.
"These countries spent--often lavishly--on apartments and hotel stays at Donald Trump's properties--personally enriching President Trump while he made foreign policy decisions connected to their policy agendas with far-reaching ramifications for the United States," Democrats wrote in their report.

CNN reported that Saudi Arabia, for example, spent roughly USD 600,000 at Trump-owned properties during his time in office and was making significant payments in May 2017 when it signed a massive arms deal with the Trump administration.
The Trump administration agreed to the controversial arms deal, worth over USD 100 billion, despite bipartisan concerns about civilian casualties resulting from Saudi Arabia's military intervention in Yemen.

The report produced by House Democrats also highlighted comments made by Trump during a 2015 campaign rally regarding his view of Saudi Arabia.
"Saudi Arabia, I get along great with all of them. They buy apartments from me. They spend USD 40 million, USD 50 million." He continued, "Am I supposed to dislike them? I like them very much!" Trump said at the time.

Committee Democrats have previously released some of the accounting records, but those documents only accounted for a fraction of the foreign payments to Trump-owned businesses during the years he occupied the White House.

A sizable percentage of foreign spending disclosed in the latest report comes from leases or common charge payments countries made for apartments their diplomatic missions rent or own at Trump World Tower, an apartment building across the street from the United Nations.

Many of the countries bought properties years before Trump ran for office, but they continued to make payments to the Trump Organization during the presidency.
Saudi Arabia, India, Qatar, Kuwait, Afghanistan, and a Chinese-government-linked petroleum company each owned or rented apartments at Trump World Tower and combined paid the Trump Organization an estimated USD 1.7 million in fees, according to House Democrats.

The figure is based on records the Democrats received from Mazars for the year 2018--the only year Mazars gave to the committee--and then an extrapolation based on the assumption that the charges remain the same during Trump's presidency.

The biggest payment to the UN property came from Saudi Arabia, which owns the 45th floor of the apartment tower. Democrats estimate the Saudi government paid USD 537,080 during Trump's presidency--out of a total of USD 615,422 in emoluments. The remainder came from payments to Trump's hotel in Washington, DC.

Qatar paid an estimated USD 465,744 for the properties it owned during Trump's presidency; India paid at least USD 264,184; Afghanistan spent an estimated USD 153,208 for its unit; and Kuwait paid Trump's company USD 152,664 for the Trump World Tower.

Kuwait also spent roughly USD 150,000 to the Washington hotel for National Day events held by its embassy in 2017 and 2018, according to Mazars records.

The national day event was also held at the hotel in 2019, but the Democrats said they did not receive records from Mazars related to the cost. The events were attended by Trump administration officials, the Democrats said citing press releases from the Kuwaiti embassy.

Source: Dailyhunt

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