“ Campaign Contributors’ PRC Connections Information obtained by the Committee reveals close ties between the PRC and many of the individuals who produced or facilitated foreign campaign contributions. And these individuals – Ted Sioeng, Maria Hsia, John Huang, and James and Mochtar Riady – interacted with one-another with some frequency. Their paths appear to have crossed most often when they were engaged in fundraising or contributing money to the Democratic National Committee. ”

“ Summary It is clear that illegal foreign contributions were made to the DNC and that these contributions were facilitated by individuals with extensive ties to the PRC. The original sources of many of these contributions were bank accounts in the Greater China area.
It is also clear that well before the 1996 elections, officials at the highest levels of the Chinese government approved of efforts to increase the PRC’s involvement in the U.S. political process. There are indications that the plan or parts of the plan and possibly-related PRC activities were implemented covertly in this country. ”

“ This is so because only U.S. citizens or legal permanent residents can contribute lawfully to political parties and campaigns. Moreover, the use of businesses and individuals as intermediaries is increasingly common among Chinese intelligence and military organizations.20 Given the way the PRC exercises control over certain businesses and individuals, it hardly would be surprising to learn that the PRC directed overseas Chinese to contribute to particular parties or candidates. ”

“ The individuals who facilitated the contributions have either elected to take the Fifth Amendment or flee the country. Beijing has denied the Committee’s request for assistance. Moreover, after its hearings concluded, the Committee learned that the Chinese leadership was pleased no PRC agencies have yet been implicated in the campaign finance scandal. ”

“ State-owned or controlled companies – particularly those controlled by the People’s Liberation Army – are used increasingly as part of a Chinese network to acquire Western technology in the United States and other countries. Jane’s Defense Weekly, December 17, 1997, p. 1. Another area is intelligence-gathering, where the PRC government has attempted to cultivate members of the overseas Chinese community as information sources. ”

“ It is also well-established that the PRC wields influence over a wide range of entities and individuals, many of whom conduct business directly with the PRC. One area in which the PRC employs businesses is economic espionage. ”

“ The Committee has received information that Hsia worked with Ted Sioeng and John Huang to solicit contributions from Chinese nationals in the United States and abroad for Democratic causes. Hsia and Huang, in particular, worked together to identify non-U.S. citizens overseas who might contribute money to Democratic causes. ”

“ The information is considered part of a criminal investigation and cannot be discussed with the Committee further;
PRC intelligence officials discussed increasing China’s lobbying efforts in the United States and planned to raise millions of dollars to support those efforts. PRC officials met with one or more Chinese businessmen residing outside of mainland China to discuss raising the money and how it would be spent ”

“ Hsia has a long standing relationship with the Hsi Lai temple. She, with Huang, organized the April 1996 fund-raiser held there and attended by Vice President Gore, and laundered thousands of dollars illegally through temple clerics in connection with the event. The Committee has identified over $130,000 in political contributions illegally laundered through temple monastics at Hsia’s direction. ”

“ They included retaining lobbying firms, inviting more Congresspersons to visit China, and attempting to communicate Beijing’s views through media channels in the United States. However, other efforts appear illegal under U.S. law. Although most discussion of PRC activities focused on Congress, the Committee’s investigation suggests that China’s efforts involved the 1996 Presidential race and state elections as well. The Committee has received information that the government of China may have allocated millions of dollars in 1996 alone to achieve its objectives. ”