A team of GOP senators on Thursday sent a letter to Treasury Secretary Janet Yellen to categorical their worry about the proposed acquisition of Forbes by an entity they say is joined to the Chinese Communist Bash (CCP).
In the letter, the senators urged Yellen to look into Hong Kong-based Magnum Opus Acquisition Limited’s acquisition of the firm, citing China’s “deliberately vague patchwork of intelligence, national protection, and cybersecurity laws” that they mentioned “compel firms to support and cooperate with the government’s intelligence function.”
“Not only is Magnum Opus domiciled inside of the jurisdiction of the Chinese Communist Occasion (CCP), but the seed income for Magnum Opus came directly from China’s sovereign wealth fund, the Chinese Financial investment Corporation (CIC),” they wrote.
The senators alleged that the CCP has a “clear” intent to “wield the Forbes brand” and quoted a proxy assertion from Magnum Opus declaring if it acquires the organization, Forbes could be issue “to oversight and discretion of [People’s Republic of China] governmental authorities, which could look for to intervene or influence its organization functions at any time that the governing administration deems acceptable to even more their regulatory, political, and societal goals.”
The letter was signed by Sen. Bill Hagerty (R-Tenn.), a member of the Senate Overseas Relations Committee, and Sens. Tom Cotton (R-Ark.), Monthly bill Cassidy (R-La.) and Ted Cruz (R-Texas.).
“Forbes is a recognizable American manufacturer with huge propaganda price to the CCP. On top of that, the CCP’s direction of Forbes’ editorial articles and business enterprise operations, or its access to Forbes’ economic and personalized study, could current a major national stability danger to the United States,” the senators wrote in their letter.
“As users of the Intelligence, Judiciary, Banking, and Finance Committees, we check out proposed transactions like this a single as a persuasive cause for enhanced oversight of the CCP’s predatory financial habits in American marketplaces,” the senators extra. “We urge you to get the essential steps to comprehensively overview the instances and potential penalties of this offer.”
Magnum Opus and Forbes declared in August that they had entered into a merger arrangement, by way of which Forbes would develop into a general public company. The corporations said at the time that they expected the offer to shut in late 2021 or early 2022.