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Edited by: Fern Sidman
In a startling revelation, allegations have surfaced regarding the operation of a Chinese Communist Party (CCP) cell within the Park Avenue headquarters of China International Capital Corporation (CICC), one of China’s largest investment banks. The accusations, made by American trader Andrea Bischof in a federal discrimination suit filed against the bank, shed light on the pervasive influence of the CCP within multinational Chinese corporations operating in the United States, according to information provided in a recently published report in the New York Post. As the legal proceedings unfold, experts warn of the broader implications for US-China relations and the growing concerns surrounding CCP activities on American soil.
The discrimination suit filed against CICC in 2022 by Andrea Bischof, a former employee, alleges that the investment bank required allegiance to the CCP and adherence to Party beliefs from its top executives. Bischof claims she was denied a promotion due to her non-membership in the CCP or her status as a Chinese national. Moreover, the report in the Post said that she accused the bank of imposing strict rules, including directives in Chinese emphasizing compliance with party policies, and establishing party committees within the office.
The lawsuit, spanning 50 pages, paints a troubling picture of the internal dynamics at CICC and raises serious questions about the extent of CCP influence within the organization. As was indicated in the Post report, Bischof’s claims underscore the challenges faced by foreign employees in navigating the complex web of political affiliations and expectations within Chinese-owned firms operating abroad.
Despite the gravity of the allegations, CICC chose not to respond to the accusations in court, opting for silence in the face of legal scrutiny. The information in the Post report also said that ten weeks after filing the lawsuit, Bischof voluntarily withdrew the allegations, leaving lingering questions about the veracity of her claims and the potential pressures faced by whistleblowers in challenging powerful corporate entities with ties to the CCP.
The lawsuit against CICC underscores broader concerns about the encroachment of CCP influence in the United States, particularly within key sectors such as finance and banking. Speaking to the Post, Derek Scissors, a senior fellow at the American Enterprise Institute, highlighted the symbiotic relationship between Chinese banks and the Communist state, emphasizing the exclusion of foreigners from positions of power and the expectation for senior executives to be CCP members.
The case of CICC is emblematic of the broader trend of CCP infiltration into American institutions, including the recent revelations of secret Chinese police stations in Manhattan’s Chinatown, the Post report said. These developments underscore the need for heightened vigilance and regulatory oversight to safeguard against undue influence and protect the integrity of US institutions and values.
The case of Andrea Bischof against China International Capital Corporation (CICC) unveils a complex web of allegations surrounding the influence of the Chinese Communist Party (CCP) within the multinational investment firm’s US branch. Bischof, a former employee, has filed a lawsuit detailing claims of discrimination and bias stemming from purported requirements of allegiance to the CCP. As the legal battle unfolds, it sheds light on the intricate dynamics at play within Chinese-owned corporations operating abroad and raises broader questions about CCP influence in the United States.
Andrea Bischof’s journey at CICC began in 2015 when she was recruited from Bank of America Merrill Lynch to join the Chinese-owned firm. The report in the Post pointed out that despite being a foreigner, Bischof quickly established herself as one of the company’s most successful traders, earning praise from Haizhou Huang, CICC’s head of global equities, for her consistent contributions to the team.
However, Bischof alleges that as early as 2016, indications surfaced regarding a growing emphasis on CCP membership and allegiance within CICC’s US branch. According to court documents, Elaine LaRoche, then Acting CEO of CICC US, purportedly hinted at this shift in focus during discussions with Bischof and other employees, the Post reported. Despite Bischof’s exemplary professional qualifications and performance, she claims to have faced blatant bias and discrimination due to her non-membership in the CCP.
Key evidence presented in the lawsuit includes a 2021 email outlining “Eight Bottom Lines” of staff behavior within the equities department, closely resembling the CCP’s own regulations introduced in 2012. The email, sent in Chinese to Chinese employees, mandates compliance with party and state policies as the top rule. The Post report said that Bischof has further alleged the establishment of internal CCP committees within CICC’s New York office, including the “Committee on Serving National Strategy” and the “Steering Group for Culture Development,” with party members assuming leadership roles.
The lawsuit implicates CICC’s CEO, Zhaohui Huang, based in China, in using assessments of party members’ loyalty as part of annual staff reviews. CICC, controlled by China Construction Bank and ultimately owned by the Chinese government, maintains extensive ties with US financial firms, including Goldman Sachs, according to the report in the Post. Derek Scissors, an expert on Chinese investment, emphasized the perceived impossibility of foreigners attaining senior positions within Chinese firms without CCP affiliation.
Andrea Bischof’s lawsuit against CICC highlights the broader issue of CCP influence within multinational corporations operating in the United States. The case underscores the complexities of navigating political affiliations and expectations within Chinese-owned entities and raises concerns about the integrity of US institutions in the face of external pressures, as per the information in the Post report. As the legal proceedings continue, the outcome will not only impact Bischof’s personal experience but also shed light on the broader implications of CCP influence on American soil.
As allegations of CCP influence continue to surface, the case of China International Capital Corporation serves as a stark reminder of the complex challenges posed by Chinese multinational corporations operating in the United States, the Post report said. While legal proceedings may offer some insight into the extent of CCP infiltration, the broader implications for US-China relations and national security warrant sustained attention and action. Vigilance, transparency, and adherence to democratic principles are paramount in safeguarding against external influences that threaten the integrity and sovereignty of the United States.
The case of Andrea Bischof against China International Capital Corporation (CICC) unveils a complex web of allegations surrounding the influence of the Chinese Communist Party (CCP) within the multinational investment firm’s US branch. Bischof, a former employee, has filed a lawsuit detailing claims of discrimination and bias stemming from purported requirements of allegiance to the CCP. As the legal battle unfolds, it sheds light on the intricate dynamics at play within Chinese-owned corporations operating abroad and raises broader questions about CCP influence in the United States.
