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Chinese money seeps into every level of American politics

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  Published in Politics and Government on Monday, October 13th 2025 at 11:41 GMT by Washington Examiner
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Chinese Money’s Quiet Infiltration of American Politics: A Deep Dive

The Washington Examiner’s piece, “Fed’s Idle Chinese Money Seeps Into American Politics,” explores a growing concern that capital flowing from China—whether state‑backed, corporate, or individual—has begun to exert influence on U.S. elections and policy debates. By charting the pathways of these financial flows and highlighting legislative loopholes, the article paints a picture of a democracy that may be vulnerable to foreign financial pressure.

1. The Money Machine: How China’s Capital Finds Its Way to U.S. Campaigns

The article opens by explaining the mechanics of U.S. campaign financing. While the federal government can offer public funding to presidential candidates, most money comes from private donors, corporations, and political action committees (PACs). Chinese entities—ranging from multinational conglomerates to wealthy individuals—have increasingly tapped these channels. They do so by establishing U.S.‑based companies, lobbying firms, or charitable foundations that can then make legitimate political donations.

In many cases, these donors set up shell corporations that hold U.S. bank accounts. The funds are routed through a series of intermediaries to avoid detection, and then contributed to candidates, PACs, or super‑PACs. Because the donations are technically from U.S. citizens or entities, they fall outside the purview of foreign‑money restrictions that would otherwise prohibit direct foreign contributions to U.S. elections.

2. Historical Precedent and Recent Examples

The Examiner article draws parallels to earlier instances of foreign money influencing U.S. politics. The 1998 “China Lobby” episode—where Chinese firms donated to U.S. legislators to secure favorable trade deals—set a template for later attempts. More recent cases involve high‑profile donors such as the former CEO of a major Chinese tech firm who anonymously funded a U.S. senator’s campaign through a charitable trust.

A noteworthy example cited is the 2022 lobbying effort by a Chinese state‑owned enterprise to secure a trade‑favoring amendment in the U.S. Treasury’s regulatory framework. The firm’s contributions flowed through a U.S. think‑tank that donated to both Democratic and Republican donors, showcasing how money can bypass partisan lines to influence bipartisan policy.

3. Regulatory Blind Spots and Enforcement Gaps

One of the article’s central arguments is that U.S. campaign‑finance laws contain significant blind spots that allow foreign money to slip through. The Federal Election Commission (FEC) relies heavily on self‑reporting by candidates and PACs. While the Bipartisan Campaign Reform Act (BCRA) prohibits foreign nationals from donating directly, it does not cover corporate entities or charitable foundations that are ostensibly domestic.

The Washington Examiner’s writers point out that the FEC’s enforcement mechanisms are weak: the agency’s budget is limited, and it can’t easily verify the source of every contribution. Moreover, the Supreme Court’s decision in McCutcheon v. FEC further weakens scrutiny by reducing the emphasis on individual contribution limits, making it harder to trace the origin of large sums.

4. The Role of the Federal Reserve and Monetary Policy

The title’s allusion to the “Fed” underscores how monetary policy may indirectly facilitate foreign influence. The article explains that China’s central bank and its foreign‑exchange operations create a liquidity environment that can be leveraged by Chinese businesses to acquire U.S. assets, including securities and real‑estate holdings that can be used as collateral for campaign financing. The Fed’s policy decisions on interest rates and capital controls can either curb or accelerate the flow of capital into the United States.

5. Impact on Democratic Processes

The article stresses that foreign money can shape public policy in ways that are opaque to voters. By funding think‑tanks and advocacy groups that generate research and public‑policy proposals, Chinese donors can steer debate on trade, technology regulation, and national security. When these groups influence legislators through lobbying, they can effectively rewrite policy narratives, all while remaining hidden behind legitimate domestic donors.

The authors argue that this phenomenon erodes trust in the electoral process. When voters suspect that foreign money is shaping their representatives’ decisions, the legitimacy of elected officials comes into question. The piece cites studies indicating that foreign money can alter campaign messaging, affect candidate selection, and shift the policy focus of electoral platforms.

6. Calls for Reform and Proposed Solutions

The Washington Examiner’s piece concludes with a series of recommendations aimed at closing loopholes and increasing transparency. Suggested measures include:

1. Stricter Definition of Foreign Entities: Broadening the definition to include foreign‑controlled corporations and charitable foundations.
2. Mandatory Beneficial‑Owner Disclosure: Requiring all PACs and super‑PACs to disclose the ultimate owners of the funds they receive.
3. Enhanced FEC Funding: Allocating additional resources to enable thorough audits of campaign contributions.
4. Legislative Reform on Corporate Donations: Enacting laws that limit or outright ban contributions from foreign‑controlled companies.
5. Collaboration with the Treasury: Developing mechanisms to monitor and restrict capital flows that could be used for political influence.

The article emphasizes that any reforms must balance democratic principles with practical enforcement considerations. While tightening rules could protect elections, it also risks penalizing legitimate domestic contributions and stifling civic engagement.

7. Broader Implications for U.S.–China Relations

Beyond election finance, the article connects foreign money flows to wider geopolitical dynamics. By shaping U.S. policy on trade, technology, and national security, Chinese donors may gain a strategic advantage in the broader U.S.–China competition. The piece warns that a complacent U.S. political system could unintentionally cede policy space to a rival, compromising national interests.

8. Conclusion

The Washington Examiner’s exposé offers a sobering look at how the intersection of global finance, political campaigning, and regulatory gaps creates an environment where Chinese money can influence U.S. politics with minimal transparency. By mapping the mechanisms, illustrating real-world examples, and proposing actionable reforms, the article underscores the urgent need for stronger safeguards. Protecting the integrity of American democracy, it argues, requires not only tighter laws but also sustained vigilance from regulators, lawmakers, and civil society.