Barr Warns Executives on Pushing Policies at Behest of China
July 16 2020 - 12:49PM
Dow Jones News
By Aruna Viswanatha and William Mauldin
Attorney General William Barr took aim Thursday at a range of
American companies and industries for what he described as a
willingness to accede to authoritarian demands from the Chinese
government, as the Trump administration has stepped up its rhetoric
and actions countering Beijing's recent activities.
In a speech in Michigan, Mr. Barr criticized the Hollywood
entertainment industry as well as tech giants including Alphabet
Inc.'s Google and Apple Inc., saying they are "all too willing to
collaborate" with the Chinese Communist Party.
In remarks before an audience of members of the business and
university communities in Michigan, Mr. Barr warned executives to
be careful of pushing policies at the behest of Chinese
authorities, which he said could require registration under a U.S.
lobbying law.
"America's corporate leaders might not think of themselves as
lobbyists, " Mr. Barr said, telling them: "But you should be alert
to how you might be used, and how your efforts on behalf of a
foreign company or government could implicate the Foreign Agents
Registration Act."
Many large U.S. companies see much of their future growth coming
from China, so it's unclear to what degree warnings from the
administration or the risk of bad publicity will change their
calculus.
The speech was the latest effort by the administration to take
aim at a range of Chinese actions. This week, the Trump
administration came out publicly in opposition to China's claims of
maritime rights in much of the South China Sea, a move that
supports Vietnam, Malaysia and other countries in the region that
have claims there. A U.S. guided-missile destroyer on Tuesday
sailed by the Spratly Islands, claimed by China and other
countries, in a "freedom of navigation" operation.
Late Tuesday, Mr. Trump used a Rose Garden press conference to
announce he had signed legislation allowing for sanctions against
people and entities linked to Beijing's new security law on Hong
Kong. That night the White House released an executive order aimed
at phasing out privileges Hong Kong has enjoyed over mainland China
in U.S. law.
Secretary of State Mike Pompeo said Wednesday the U.S. would
decline to issue travel visas to unspecified executives of Chinese
technology firms, including Huawei Technologies, that "provide
material support to regimes engaging in human rights violations and
abuses." Earlier this month, four government departments released a
joint memo warning American firms that they risk violating U.S.
sanctions or reputational damage if their supply chains or
customers are connected with China's Xinjiang region, where
academic researchers say more than a million Uighur Muslim
minorities have been detained.
In other recent speeches, the FBI director, Christopher Wray,
and Mr. Trump's national security advisor, Robert O'Brien, have
laid out what they view as the threats emanating from China in some
of the starkest terms yet.
Americans are "the victims of what amounts to Chinese theft on a
scale so massive that it represents one of the largest transfers of
wealth in human history," Mr. Wray said, speaking at the
conservative Hudson Institute last week. He also disclosed that the
Federal Bureau of Investigation is opening a new China-related
counterintelligence case every 10 hours, with nearly 2,500 such
cases underway.
"At this very moment, China is working to compromise American
health care organizations, pharmaceutical companies, and academic
institutions conducting essential Covid-19 research," Mr. Wray
said.
The Justice Department and the FBI have in particular been
focused on China's efforts at American universities to fund
scientists to essentially moonlight at Chinese universities and set
up research projects parallel to those they are conducting in the
U.S. with American government funding including the National
Institutes of Health.
Last week, for example, the FBI arrested an Ohio State
University rheumatology professor on charges of grant fraud and
making false statements for allegedly not disclosing his Chinese
government funding to the NIH, which awarded him more than $4
million in funding, according to the criminal complaint filed
against him. The professor was arrested in Alaska as he was
preparing to board a charter flight to China.
In May, researchers from the Cleveland Clinic and the University
of Arkansas were charged in similar cases.
Write to Aruna Viswanatha at Aruna.Viswanatha@wsj.com and
William Mauldin at william.mauldin@wsj.com
(END) Dow Jones Newswires
July 16, 2020 12:34 ET (16:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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