Edwards Gives Taxpayer Dollars To Chinese Company Linked To Communist Party
Today Governor John Bel Edwards (D-LA) announced that Wanhua Chemical, a Chinese company, will open a chemical manufacturing complex in Louisiana. With the announcement of this deal though, many Louisianans will be shocked to learn that their tax dollars will soon be going to a Chinese company in-part owned by the Chinese government.
As part of the deal Governor Edwards struck, Louisiana will give a $4.3 million grant to Wanhua, as well as generous tax exemptions:
“As part of the deal, Wanhua will tap state tax exemption programs. The Industry Tax Exemption Program exempts a company from property taxes on its new complex for 10 years. The Quality Jobs Rebate program grants a 6-percent rebate for 10 years for up to 80 percent of a company’s payroll for new direct jobs. In July 2018, a company’s entire payroll will be eligible, according to the LED.”
These lavish benefits will directly benefit the Chinese government and the Chinese Communist Party, who owns a good percentage of the company:
“Wanhua Chemical Group Co. Ltd., the world’s largest producer of MDI, is incorporated in Yantai, Shandong province and has been listed on the Shanghai Stock Exchange since 2001. It is 50.5% owned by Wanhua Industrial Group Co. Ltd. (unrated), in turn 39.5% owned by Yantai State-owned Assets Supervision and Administration Commission (SASAC).”
Troublingly, the Assets Supervision and Administration Commission is used by the Chinese Government to “manage” companies like Wanhua:
“Authorized by the State Council, in accordance with the Company Law of the People’s Republic of China and other administrative regulations, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) performs investor’s responsibilities, supervises and manages the state-owned assets of the enterprises under the supervision of the Central Government (excluding financial enterprises), and enhances the management of the state-owned assets.”
While Edwards will try to spin these facts away, the conclusions are unmistakable. Edwards is sending Louisiana citizens’ tax dollars into the coffers of the Chinese government.