Monday, April 3, 2017

Should The Chinese Be Permitted To Buy U.S. Money Transfer Giant MoneyGram?

Photo from Reuters

Politico: Chinese grab for U.S. money transfer giant sets off alarms

The purchase by Ant Financial, which is partially owned by the Chinese government, poses a test for the Treasury Department oversight body.

A Chinese company’s plans to acquire U.S. money transfer giant MoneyGram is raising fears that the communist government in Beijing could gain sensitive intelligence on Americans’ personal and financial information — including data on thousands of government employees and military personnel.

The purchase by Ant Financial, which is partially owned by the Chinese government, also poses a test for the 42-year-old Treasury Department oversight body that has been asked to review the deal to determine any security risks.

Read more ....

WNU Editor: Chinese state companies that do business on the international scene are focused on two things .... making money on their investments .... and gathering intelligence. This would be a big mistake for the U.S..

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I have seen general harassment of a former foreign services officer. They worked some years in the diplomatic corps and then worked for a company that measures things like GDP, industrial sectors, health of companies. We are not talking high tech espionage. We are talking about P/E ratios and accounting.

Investing in China is fraught with danger. They want you to invest and then will not open their books. A relative went over to check out a company to see if their could be partnership. Other than walking around and see what they could see, they got no information. Plenty of idle people. 3 to 5 people per machine. Very unproductive. The people were surly, belligerent and standoffish. Part of this might have been, because it was a Muslim area. Playing the race card did work.

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