Millions in Louisiana Taxpayer Dollars Going to Chinese Company with Communist Party Ties Millions in Louisiana Taxpayer Dollars Going to Chinese Company with Communist Party Ties – NTK Network

Millions in Louisiana Taxpayer Dollars Going to Chinese Company with Communist Party Ties

The governor agreed to dole out a $4.3 million grant to the company, which has several associates on its board who are members of the Chinese Communist Party.

By NTK Staff | 01.24.2018 @7:00am
Millions in Louisiana Taxpayer Dollars Going to Chinese Company with Communist Party Ties

The governor of Louisiana is sending $4.3 million in taxpayer dollars to a company owned, in part, by the Chinese government.

Gov. John Bel Edwards (D-LA) pledged the multi-million dollar grant to Wanhua Chemical, who in turn agreed to invest $1.1 billion to build a plant in Louisiana. The company will also receive tax breaks and exemptions for a 10-year period.

Edwards called the deal “a testament to the strength of Louisiana’s business climate and unmatched transportation logistics.”

Early reports indicate it will only produce 170 jobs, however, and the ties to the Chinese government are cause for concern for some.

The deal also will send Louisiana tax dollars to the Chinese government and members of the Chinese Communist Party, which own a sizable percentage of the chemical company. Wanhua Industry Group, a holding company that owns almost a 48 percent stake in Wanhua Chemical, is itself almost 40 percent owned by a Chinese government entity, the Yantai State-owned Assets Supervision and Administration Commission (SASAC).

The governor’s office rejected the notion that Louisiana taxpayers’ dollars would go to China’s Communist Party, despite the clear connection.

But perhaps most surprisingly, this is not the largest Chinese investment in the state’s chemical manufacturing industry:

Yuhuang Chemical, a subsidiary of China’s Shandong Yuhuang Chemical Company, is developing a $1.85 billion methanol complex in St. James Parish, Louisiana, located some 50 miles west of New Orleans.

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