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Are Green Foreign Agents Bankrolling Shapiro Campaign?

Climate change activists opposed to energy production in Pennsylvania like what they see in Josh Shapiro, the attorney general now running for governor. 

Campaign finance records show the Natural Resources Defense Council Action Fund (NRDC) is contributing to the Conservation Voters of Pennsylvania Action Fund, which in turn is contributing to Shapiro’s gubernatorial bid. 

That is significant because both political action committees are tied in with well-endowed environmental groups that have been the subject of congressional probes into Russian-funded efforts aimed at disrupting America’s energy sector.

The NRDC, which has more than $460 million in assets, according its most recent tax filing, incessantly lobbies in favor of regulations restricting energy use in Pennsylvania. The New York-based nonprofit has also published reports designed to undermine public support for innovative drilling techniques like hydraulic fracturing that make it possible to access oil and gas deposits in the Marcellus Shale, a geological formation of sedimentary rock that cuts across parts of Pennsylvania, New York, Ohio, Maryland, Virginia, and West Virginia.

Conservation Voters of Pennsylvania Action Fund is affiliated with the League of Conservation Voters, which tax records show has more than $20 million in assets.

The Marcellus Shale Coalition, a group that supports energy companies and their employees, has a blog post detailing the harm that could be done to America’s economic, environmental, and national security interests in the event of a ban on hydraulic fracturing. That seems to be the overriding goal of the NRDC, and other environmental activist groups, that figure into a money trail allegedly leading back to Russia. 

In 2017, U.S. House members sent a letter to then-Treasury Secretary Steven Mnuchin, calling attention to the role played by the Sea Change Foundation, a private entity based in San Francisco, that received funding from an overseas source. 

The foundation received $23 million from a Bermuda-based shell company between 2010 and 2011, which was then funneled into groups like the NRDC, the Sierra Club, and the League of Conservation Voters Education Fund in the form of grants, according to the letter. 

For the record, the NRDC has also been called out for maintaining close relations with China that suggest it may be operating in violation of foreign agent registration requirements.  In 2018, members of the U.S. House Natural Resources Committee sent a letter to NRDC inquiring about its collaborative efforts with Chinese government officials. 

The group has denied operating as a foreign agent. But thanks to its well-heeled benefactors, it has ample funds to put Pennsylvania residents who rely on affordable, reliable energy at a great disadvantage. 

Big Green Inc., a project of the Institute for Energy Research, a Washington D.C.-based nonprofit, has tracked hundreds of thousands of dollars flowing from left-leaning foundations into the coffers of green activist groups that target Pennsylvania. That database shows the Sea Change Foundation has pumped hundreds of thousands of dollars into the state since 2010. 

What are the implications for the governor’s race in Pennsylvania and the future of energy policy for the state?

Although Shapiro postures as an ally of trade unions on the campaign trail, he is also accepting funds from environmental activist groups that target the industries supporting union workers. Even so, those same trade unions have contributed almost $3 million to Shapiro’s run for governor since 2021, according to campaign finance records. But is the attorney general really devoted to protecting union jobs associated with coal, oil, and gas companies? 

A spokesman for Shapiro said the Democrat wants to keep Pennsylvania’s energy sector strong.

“Josh Shapiro rejects the false choice between protecting jobs and protecting our plants – he believes we must do both, and he will support Pennsylvania’s natural gas industry, invest in clean energy, and protect Pennsylvanians’ constitutional right to clean air and pure water. He will protect the jobs we have while creating thousands more, and that’s why workers in the energy industry and environmental advocates have endorsed his campaign,” said Shapiro campaign spokesman Will Simons.

NRDC Action Votes and the Conservation Voters of PA Victory Fund recently announced they would spend $500,000 in independent expenditure campaign funds on behalf of Shapiro. Apparently, environmental activists expect Shapiro to cut a path toward their preferred regulatory policies if elected. 

That’s a problem not just for Pennsylvania, but for the American people as a whole. The U.S. Energy Information Administration identifies Pennsylvania as the nation’s number two natural gas producer after only Texas and the number three coal-producing state after Wyoming and West Virginia. It’s not hard to understand why a Russian propaganda campaign would attempt to take down Pennsylvania’s energy industry. 

Even if the green groups don’t view themselves as foreign agents, they clearly view Shapiro as a conduit for anti-energy initiatives that benefit America’s foreign adversaries. 

 

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Houlahan Introduces Bill to Stop Export of U.S. Strategic Petroleum Reserves to China

With America hit with record-high gasoline prices and rising inflation numbers, President Joe Biden said in March that he would do something. What did he do? Biden opened the floodgates of the Strategic Petroleum Reserves (SPR).

However, a big portion of that oil is not staying on U.S. shores. Instead, it’s flowing to China and Europe. To remedy that, Senators James Langford (R-OK) and Ted Cruz (R-Texas) and other Republicans introduced the No Emergency Crude Oil for Foreign Adversaries Act.

Now Rep. Chrissy Houlahan (D-Chester/Berks)  has announced she will sponsor the House version of that bill to keep SPR oil in the U.S. instead of allowing it to be exported to countries such as North Korea.

“Like many, I was shocked to learn that a Chinese company was able to purchase oil from our Strategic Reserves,” said Houlahan. “When I called on President Biden earlier this year to release oil to help lower the cost of gas for Americans, I thought this oil would stay within our borders, where it belongs. Today we’re taking the first step toward closing that loophole.”

Republicans Representatives Don Bacon (R-NE) and Peter Meijer (R-MI), fellow members of the Problem Solvers Caucus, joined Houlahan in introducing the bill.

“What message are we sending to the world when we sell our oil to tyrants waging war on peaceful democracies?” said Bacon. “With inflation, fuel, and cost of living at an all-time high, the Strategic Petroleum Reserve should not be serving our adversaries. We should be expanding American innovation and production here at home.”

Meijer said, “Drawing down our own strategic reserves and providing those resources to our foreign adversaries is both reckless and harmful to U.S. national security interests. Energy security is national security. Our strategic stockpiles should only be used to protect and secure U.S. interests, not to support foreign regimes that seek to undermine our country. I am proud to join this commonsense, bipartisan effort to prevent our adversaries from accessing these strategically important resources.”

Congress lifted a ban on exporting U.S. oil in 2015 but did not exempt the SPR, so that oil is also sold to the highest bidder.

Houlahan said a constituent she talked to at a town hall meeting urged her to do something about U.S. oil going to China.

“Rep. Houlahan is doing it because it’s the right thing to do,” a spokesperson said when asked if Houlahan is breaking with Biden on the issue. The bill Houlahan is sponsoring, “goes a little further. Both bills ban oil from going to Russia, China, North Korea, and Iran. Our bill includes any other country that is being sanctioned by the U.S,” according to her spokesperson.

Guy Ciarrocchi, the Republican running against Houlahan, said, “Of course, we shouldn’t sell our Strategic Oil Reserves to China: why was she asleep at the switch and allowing it in the first place?

“Worse yet, let’s not forget the only reason that our nation’s Strategic Reserve of oil is being used: Biden is using it for politics, not for its real use—war or natural disaster. Biden, Pelosi and Houlahan won’t allow American companies with American workers to produce as much American oil and gas as we can. If Houlahan wants to earn our praise—stop posturing with the press releases and photo ops: reverse your stand and work to get American energy out of the ground: to fight inflation, and improve our quality of life and national security.”

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RAPOZA: Biden’s Policy: Ukraine First. China Second. America Last.

The Biden administration is doing what every administration pre-Trump has done: Get enamored and entangled in matters of foreign intrigue preferred by the intelligence community and defense contractors. While leaving the country to the whims of the market, a market that increasingly follows the whims of Washington. We’ve gone from America First to America Last.

Ukraine first!

The U.S. government has easily found over $42 billion and counting to send to war torn, bankrupt Ukraine. Both parties agreed to this in what basically amounted to an overnight session of Congress. The decision was made in a matter of days.

By comparison, the $50 billion we are supposed to give to the U.S. semiconductor industry in tax breaks and other incentives to manufacture chips here instead of Asia languishes in Congress. It is part of the Bipartisan Innovation Act (BIA), which will take a back seat to more funding and more votes on throwing money into Ukraine. This thing is lost.

Global Foundries, Intel, and Taiwan Semiconductor Manufacturing have all put plans to boost their semiconductor manufacturing here on hold because the CHIPS for America Act, part of the House and Senate’s so-called “China competition bill” (officially the BIA) is going nowhere fast, Nikkei Asia reported on July 5.

The war in Ukraine has caused commodity prices to rise. The market is speculating on shortages caused by shipping delays. Commodity traders from New York to Hong Kong are all pushing those prices higher based on assessed geopolitical risks.

China second!

Biden thinks rolling back tariffs on China will help. His team is actively in talks with the Chinese about which Trump-era tariffs to lower. They believe if they reduce tariffs on China imports, stubborn inflation will come down.

Apparently, the experts that are in charge now believe we import oil and gas from China, along with steaks and milk. Please don’t bother telling them, they’ll ignore you. They’re smarter than you.

They’ll also ignored the Peterson Institute for International Economics, no fan of the China tariffs. One would think the Biden administration would listen to them at least. Peterson economists wrote in a report dated June 3 that “the direct effect of removing tariffs on imports from China could lower consumer price index inflation by 0.26 percentage points —only marginally reducing inflation.”

That “marginally reducing inflation” assumes housing, food, and gasoline prices fall. If they rise, there goes your 0.26 percent win.

America last!

Because of these policies, a whopping 88 percent of Americans polled by Monmouth University say the U.S. is heading in the wrong direction.

Some 42 percent say they are struggling to remain where they are financially.

It’s fine, we can afford to send our oil and gas to the rich Europeans and a few billion to the Ukrainians, one of the most corrupt countries in the world, based on Transparency International’s Corruption Perception Index. (It’s ranked lower than Russia.) I am certain the Ukrainians will be good stewards of our gifts.  They want even more, by the way, so how about making that $65 billion?

Polls also show American voters are fine with China tariffs. The White House, and its cheerleaders at Bloomberg which has been advocating for a return to the status quo with China since Biden beat Trump, aren’t interested.

In April, a poll by the Coalition for a Prosperous America, conducted by Morning Consult, showed that 73 percent of American voters supported tough trade policies with China to protect U.S. industries and American workers. Biden then ignored them and removed tariffs on Southeast Asian solar producers, mostly all of them Chinese multinationals who have relocated there to avoid tariffs.

A high 71 percent of voters support tariffs on China. And 61 percent of them said increased imports have caused the U.S. to become dependent on China for goods that are critical to the U.S. economy and U.S. national security.

In May, a separate poll by Morning Consult said that Democrats supported tariffs on China in line with Republican voters. Democrat support was increasing. Biden’s support is waning. Who are this man’s voters again?

Morning Consult said, “Democrats now find themselves aligned with the plurality of Republicans who prefer to keep the tariffs in place, even if doing so means prices will stay high.”

There is a chance “only some” tariffs will be removed. But it is the trend that is the problem. It is chipping away at what U.S. trade representative Katherine Tai has repeatedly called our biggest leverage on China.

If China was smart, it would keep its retaliatory tariffs on the U.S. At this point, what is Washington going to do about it? In a policy of Ukraine first, China second, and the U.S. last, the answer should be obvious to Beijing–it will do absolutely nothing.

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NAUGHTON: Let’s Be Rational About Electric Vehicles

Similar to most Americans, the high cost of gasoline is something I must consider as I move across the country. Either by car or airplane, it just costs more to get around.

Like clockwork, gas prices are also becoming politicized. Republicans want to blame President Biden, and the White House is trying to offer solutions that will do little to bring down gas prices. After all, the cost of a gallon of gas is mostly reflective of the price of a barrel oil, which is set on world markets and affected by everyone from the Saudis to Russian President Vladimir Putin.

With such unsavory forces in control of energy prices, it is only natural for the American people to demand answers from lawmakers about lowering gas prices.

But the harsh reality that many people don’t realize — or even acknowledge — is that our oil addiction is hard to break because we lack alternatives to replace petroleum that are cost-effective and secure.

One possibility offered, traditionally by progressive Democrats, is a full transition from gas-powered vehicles to electric vehicles, or EVs. Indeed, the Green New Deal touted by lawmakers like Sen. Bernie Sanders of Vermont and Rep. Alexandra Ocasio-Cortez of New York calls for “reaching 100 percent renewable energy for electricity and transportation by no later than 2030.”

It would be a wonderful thing for our planet, to walk away from petroleum and all drive EVs. But, we need to be honest about the challenges posed by EVs.

First, there are national security concerns. Specifically, China dominates the markets for rare earth metals, which are critical components for the batteries that power EVs. We don’t produce these mineral commodities — like lithium — in America. Even if we managed to tap into lithium resources domestically, China still controls cathode and battery manufacturing.

China would use this power over America as leverage to get us to bend to its will. Let’s not beat around the bush, China has become a totalitarian regime engaged in genocide. Beijing shows little respect for people’s basic human rights. With this in mind, do we want to both enrich China and depend on them to power our economy? Of course not.

Second, EVs are more expensive than gas-powered vehicles. How can we demand low-income Americans to spend more on their car or truck? If we want to subsidize the purchase to make an EV affordable for every single person, through tax credits or cash rewards, a good part of our nation’s budget will be dedicated to this endeavor.

Third, the American people are not in favor of going all EV. My organization recently commissioned a poll on this matter, and consider these findings:

—41 percent of respondents believe the shift toward EVs is happening and that additional federal investments are “not an effective use of taxpayer money.”

—When asked to rank federal spending priorities, funding for “increasing the number of electric vehicles” came in last, behind these more popular priorities (in order of favorability): “funding for ending childhood hunger,” “funding to fix our roads and bridges,” “funding for police training and hiring,” “funding to build K-12 schools,” “funding for wind and solar energy,” and “funding for public transportation.”

Our poll is clear: there is not the political will to spend billions of dollars to help people afford EVs. Think about this, every American without a driveway will need to have access to a publicly subsidized charger. How can the government possibly provide this charging capability to everyone? With skyrocketing inflation, Americans are simply trying to afford basic necessities. It’s no wonder EVs are lower on their immediate priority list.

Ultimately, I can foresee a future that is fully EV. Many of the challenges facing EVs could be resolved through innovation and smart government investments in clean technologies. But until we get there, let’s be realistic about EVs, and continue to support policies that help make gas-powered vehicles cleaner, and more fuel efficient.

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RUBIO: Re-Shore Rare Earths to Keep America Strong

A country incapable of providing for itself isn’t much of a great power. To ensure America stays strong for generations to come, we need to bring production of goods essential to our national security back home. That starts with re-shoring rare earth manufacturing.

For some, “industrial policy” is a dirty term associated with planned economies. But Americans have long accepted government action to help maintain domestic manufacturing in critical industries. It makes sense that we buy ships from General Dynamics, airplanes from Boeing, and missiles from Raytheon –– even if it would be cheaper to import them from abroad –– because it is clear they are goods vital to our national security. Well, the last two years have taught us that the list of such goods needs to be expanded.

One urgent addition to that list is rare earth minerals. In the 21st-century economy, rare earth minerals are crucial for powering advanced electronics. They form essential components of everything from batteries and household computers to wind turbines and military weapon systems. Without them, our modern way of life and capacity for self-defense would be crippled.

North America contains a considerable quantity of unprocessed rare earth minerals. However, the vast majority of rare earth manufacturing occurs in China. Even rare earth minerals mined in America are shipped to China for processing. In the wake of COVID-19, the invasion of Ukraine, and the supply chain disruptions that followed, it should be clear to everyone that relying on hostile regimes for basic goods is dangerous.

Just look at Western Europe’s predicament. Nations like Germany remain addicted to Russian natural gas, giving Vladimir Putin leverage over them. Cutting off Russian energy will require tremendous sacrifice on their part.

With expansive energy reserves, America is better positioned to counter Putin. But if China cut us off from rare earth products –– which Beijing has restricted in the past and could easily do again –– the effects would be catastrophic. That’s why I have introduced legislation to bring rare earth manufacturing back to America.

If passed into law, the Obtaining National and Secure Homeland Operations for Rare Earth (ONSHORE) Manufacturing Act will provide financial assistance to entities building rare earth manufacturing plants on U.S. soil and create initiatives to secure our international rare earth supply chain from foreign disruption. The ONSHORE Manufacturing Act will also prohibit taxpayer dollars from funding rare earth manufacturing in designated “entities of concern.” Americans’ hard-earned money should not be used to prop up the industrial capacity of China, Russia, or Iran.

I hope my colleagues in the Senate will join me in passing this piece of legislation, which is vital to keeping our country safe. However, we can’t stop with rare earth metals. There are other industries equally essential to our national and economic security that need re-shoring. In the coming months, it is critical that we begin rebuilding our capacity to produce pharmaceuticals, semiconductors, and more.

This is the kind of targeted industrial policy America needs to maintain its status as a great power. The threats we face from our adversaries, especially China, are wide-ranging and immense. We will need a whole-of-society effort to ensure the 21st century is another American century, and securing supply chains will have to be a part of it.

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While the Russian War in Ukraine Rages, What Is China’s Takeaway?

China has been warned by the Biden administration not to support Russia in that nation’s illegal war, but China has merely parried that jab and is looking hard at the realities of the war in Ukraine.

The Chinese have learned two things already.

President Biden is not strong at home, which is mildly interesting to China, but is significantly weak abroad, which interests China greatly. They saw in Afghanistan that this White House offers no foreign policy expertise.

They are mystified by a nation that at one moment was energy independent — in the thirstiest energy consuming country in the world — and in the next it became intentionally dependent on many of its competitors.

Biden’s decision-making is even worse.

China also understands that Russia is not nearly the fighting machine that many, including an angry President Vladimir Putin, thought they were.

As of this writing, the Russian army, unable to muster combined arms fighting skills, is slogging its way through Ukraine, having lost thousands of soldiers, including four generals killed in action (by contrast, the U.S. lost exactly zero generals in eight years in Iraq).

Putin’s decision-making is even worse.

Nuclear weapons continue to occupy the thoughts of all in the region and worldwide. Part of Russian warfighting doctrine allows use of tactical low-yield weapons, designed to allow quick takeover of affected areas.

The Chinese are not overly concerned about Biden’s comments or with Russia’s conduct of battle.

The Chinese Communist Party is dispassionately going about the business of achieving its own goals of their plan for the Great Rejuvenation of 2049.

The Defense Department views the Great Rejuvenation’s purpose is “to match or surpass U.S. global influence and power, displace U.S. alliances and security partnerships in the Indo-Pacific region, and revise the international order to be more advantageous to Beijing’s authoritarian system and national interests.” It is not ambiguous.

It is worth looking at what China is doing, out of the spotlight.

China has threatened countries supplying Taiwan with military equipment. Their obvious aim is to intimidate countries, including the United States, to pull back on aid.

There have been indications that Russia has asked China for military support. It is not clear whether China has provided any equipment. For its part, China claims Russia has not asked for equipment and this is simply U.S. “disinformation.”

China is also projecting a neutral position in the war (which has a dubious basis given its brotherly relationship with Russia). The western nations must constantly point this out. China cannot have it both ways.

Militarily, China is likely assessing its own military readiness. Russia’s generals fooled Putin into believing their forces were ready to take Ukraine in days.

China’s untested generals, many selected for political connections, not military acumen, are likely feeding Chinese leaders with claims of supremacy. Look for major exercises in China in the next few months. Chinese leaders do not want the Russian experience.

China is also advising its fellow Asian leaders not to get too emboldened with their foreign policy.

For example, China issued a thinly veiled threat to Japan.

At a March 7 news conference, Chinese foreign minister Wang Yi urged Japan not to take any actions that could be seen as interfering in things that are not their concern. In other words: Watch yourself, Japan.

The United States is not immune from efforts of intimidation.

On March 18, just before a scheduled phone call between Biden and Chinese President Xi Jinping, the Chinese navy sailed an aircraft carrier through the Taiwan Strait. The move was meant to be a reminder that Taiwan is in the Chinese’s collective minds.

During the call, according to a vague White House readout, Biden “described the implications and consequences if China provides material support to Russia.”

The Chinese foreign ministry’s view of the situation was one in which “all-round and indiscriminate sanctions” would cause suffering to the “common people.” China merely changed the subject.

Naturally, the Chinese did not address the suffering caused by incessant bombing and missiles being hurled toward cities day and night.

China is not a friend of the west, especially the United States, or Ukraine, and the clarity of the country’s leaders is abundantly clear.

Now is the time to completely re-evaluate our multi-layered relationship with this giant and squash its dream of becoming the hegemon of the Pacific Rim.

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The PGA Tour’s Sportswashing Problem in China

On the heels of NBC’s Beijing Winter Olympics coverage, in which the network faced criticism for publicizing a sporting event staged by an authoritarian regime, numerous sports and entertainment organizations are facing renewed scrutiny over their relationships with China.

That includes professional golf’s PGA Tour, an organization whose close ties and extensive business investments with China have only recently come to light, raising potential legal and regulatory problems for the PGA Tour, which enjoys tax-exempt status courtesy of the American taxpayer.

China has long had a complicated and even strained relationship with the game of golf–going back to the days of Chairman Mao, who in 1949 denounced golf as “a sport of millionaires” and banned it from being played in China. As recently as 2015, the ruling Chinese Communist Party (CCP) banned its members from joining golf clubs, warning expulsion awaited anyone who defied the ban.

In recent years, however, CCP leaders have warmed to the game, presumably because of the big revenue tournaments can generate for China and the international prestige the game could provide the abusive regime. Indeed, the Beijing-based Shankai Sports in 2018 signed a 20-year contract with the PGA Tour Series-China, a development tour similar to circuits run by the PGA Tour in Canada and Latin America.

The PGA-China deal has led to criticism that PGA Tour is providing cover for a government accused of widespread human rights abuses by partnering with them on high-profile golf events. It also faces regulatory and legal scrutiny as the PGA apparently failed to disclose it in recent tax filings.

“Today, under the dictatorial rule of Xi Jinping – a neo-Maoist thug – the PGA Tour and LPGA Tour include annual treks to Shanghai, China for the WGC-HSBC Champions and Buick LPGA Shanghai,” Pro Golf Weekly’s Jeff Smith recently wrote in an article titled “Where’s the Sportswashing Outrage With Communist China?”

“How evil is the current regime in relation to Mao?” Smith continued, referring to the founding father of the People’s Republic of China. “Last year, the United States officially accused China of committing crimes against humanity, which had engaged in the forced assimilation and eventual erasure of a vulnerable ethnic and religious minority group.”

The PGA deal in China establishes a direct connection between the golf organization and China’s government. Financing came from Yao Capital, a company whose principal is also a member of the Chinese People’s Political Consultative Conference, a political advisory group to the Chinese government, which is in the midst of a five-year plan to develop the country’s sports into a $740 billion industry by 2025.

China has proven a difficult place to do business in for many American companies, with CCP leaders having a long history of pressuring them to conform to the nation’s principles and to avoid criticizing its policies.

China’s strong-arm tactics toward the NBA are well known. When Daryl Morey of the Houston Rockets tweeted his support for Hong Kong’s freedom in 2019, China stopped broadcasting the team’s game. The Rockets and the NBA quickly distanced themselves from Morey’s comments and issued apologies all around.

Even LeBron James, perhaps the biggest name in the NBA, has felt the need to publicly side with China. Now, fans fear the same will happen with the PGA.

“Decent people everywhere root against the power and influence of Communist China, which means hoping for the worst for CCP stooges like LeBron James,” said longtime sports journalist and podcaster Gerry Callahan. “Does golf want to see the PGA become the ‘Pro-Genocide Association?’” Callahan asked.

Those concerns have been heightened in the wake of a report from a public-integrity organization in Washington that the PGA is refusing to disclose details of its financial dealings with Shankai Sports.

Tom Anderson, director of the National Legal and Policy Center’s Government Integrity Project, said that as an organization with tax-exempt status from the IRS, the PGA Tour is required to file financial disclosures regarding its business dealings in China. But the PGA’s tax filings for 2018 and 2020 do not contain any disclosures about its transactions involving Shankai or Yao, Anderson told InsideSources.

In a statement, PGA Tour spokesperson Laury Livsey said the filing isn’t required because the China tour is a separate entity.

“The PGA Tour established a separate entity, based in Beijing,” Livsey said. “The PGA Tour’s Form 990 only relates to the tour’s activity, and the activity of a subsidiary would not be reported on the PGA Tour’s Form 990. In any event, it is not a requirement that organizations identify or disclose ancillary contracts or deals.”

Anderson doesn’t agree, and his organization is filing a complaint with the IRS about the PGA’s lack of disclosure.

“At the end of the day, if you have a serious operation outside of the United States and you’re a non-profit, you have to disclose that operation, and in detail: The number of employees you have, the companies you have contracts with,” Anderson said. “The PGA says they’ve found a loophole, but they haven’t.”

It is tempting to dismiss a topic like golf as just fun and games. But foreign policy experts say the Chinese regime sees it as something else: soft power.

“As China’s economy has grown in recent decades, so, too, has its desire to advance its soft power objectives around the world, including in sport,” said Craig Singleton, Senior Fellow at the Foundation for the Defense of Democracies (FDD), a nonpartisan think tank focused on foreign policy and national security issues.

“Beijing’s hosting of the 2008 summer Olympics was a watershed moment for China, representing the country’s return as a so-called ‘great power.’ Since then, and culminating in the most recent 2021 Olympics, Beijing has methodically invested in sport, entertainment, and international fora as a means to positively shape global perceptions about China.” Singleton added. “Beijing’s soft power investments are also intended to offset criticism of its hard power capabilities, namely China’s ongoing efforts to modernize its military and its intimidation of Taiwan.”

Will pro golfers who oppose China’s anti-democratic policies, its takeover of Hong Kong, or its threats against Taiwan be forced to remain silent or find themselves forced out of the league?

That type of arrangement is part of China’s playbook, James Carafano, vice president for national security and foreign policy at The Heritage Foundation, said in an interview.

“The Chinese purposefully look to take any national or international institution and essentially make it an extension of Chinese power and influence,” Carafano told The Daily Signal, which is Heritage’s multimedia news organization.

It is clear the PGA Tour has tried to minimize, if not outright conceal, their business relationship with China for years, and judging by their recent statement, they continue to downplay their close ties with the CCP. It is time for the non-profit, tax-exempt Tour to fully disclose the extent of their business dealings with China. If they refuse, the IRS and federal regulators must investigate to see if the Tour’s actions violate federal law.

 

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ERVIN: Absence of Secure Mineral Supply Chain Poses Threat to U.S. Manufacturers

Now is the time to ask: How important is the mining of minerals and metals in the United States to the advancement of clean energy technologies? As demand for clean energy metals soars, and as global supply chain challenges only grow more pronounced, the answer is exceedingly clear. Building a domestic mineral supply chain is foundational to the energy transition and electric vehicle revolution.

Geopolitical considerations are an important dimension of the need for U.S. mobilization in the minerals and metals space. U.S. mineral import reliance is at alarming levels and China is now the dominant producer of half of the more than 30 minerals the U.S. government has deemed critical to our economic and national security. Overreliance on a geopolitical rival for fuel or critical materials is not a place we want to be—just ask the E.U. as it deals with Russian dominance of the European gas market. But even putting aside grave geopolitical considerations, soaring commodity prices, and the threat they pose to clean energy deployment are reasons enough for the U.S. to fully engage in mineral supply chains.

Consider what is happening with the metals used for lithium-ion batteries, the enabling technology for EVs. Lithium prices jumped a staggering 437 percent in 2021 and they continue to rise this year. New battery manufacturing capacity is coming online far faster than miners can open new mines and bring production to market. The result is a tear in the lithium market that is showing no signs of slowing down.

What’s happening with lithium – while extreme – is precisely what could happen with so many other metals essential to the energy transition. From copper and nickel to rare earth minerals there’s well-founded concern the world is financing far greater demand for these minerals and metals than their supply. New mining projects are not coming online at nearly the volume or speed needed to keep up with the accelerating pivot to green energy.

The International Energy Agency (IEA) predicted in a landmark study last year that demand for some key metals, like lithium, could grow 40-fold by 2040. The mining industry is woefully ill-suited to keep up with that kind of demand. Mining projects are notoriously complex and time-intensive. While a new battery mega factory that can crank out batteries for millions of new EVs can be built and begin operation in just two years, the mines needed to supply it take far, far longer. In fact, from inception to completion, major new mining projects in the U.S. take 17 years on average to bring to market.

The machines of the green revolution have an acute materials problem and as we’ve seen, supply challenges can upend economies. This past year car dealerships were left empty when chip shortages deeply constrained new car production. The same kind of scenario could be coming for solar panels, wind turbines, and EVs as the materials needed for their production simply don’t materialize at scale.

The American manufacturing renaissance the Biden administration envisions led by the auto sector is being built upon a supply chain that for all intents and purposes doesn’t exist. That Made-in-America parade isn’t going to march unless there’s a swift and decisive commitment to mined-in-America.

Counting on global materials production to meet demand is a recipe for failure. As the IEA implored, mineral-producing nations must lean into the challenge. And despite our growing import reliance, the U.S. is rich in mineral resources. From lithium to nickel, copper, rare earths, and even cobalt, the U.S. has vast reserves. What we need is the policy commitment to ensure we can produce them and do so quickly. The U.S. has world-leading mining environmental and labor standards, what we must do is ensure we use those standards to encourage responsible production, not block it.

The world cannot afford for the U.S. to only be a materials consumer during the energy transition. We must also become a leading producer. Instead of depending on, or hoping for, imports from foreign-trade adversaries like China, we must help produce the materials that are the building blocks for the emissions-free technologies needed to win the climate fight. American manufacturing policy and energy policy should rest on the shoulders of American mining policy.

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McCormick Touts Mission at Campaign Stop in Bensalem

Republican U.S. Senate candidate David McCormick had never thought about running for elected office. Then he saw the Biden administration’s chaotic — and deadly — withdrawal from Afghanistan last year and decided he had to do something.

“Seeing Afghanistan play out just grabbed our attention and just shook us,” said McCormick, who is married to Trump administration national security advisor Dina Powell. “My wife has done a lot of public service, too. She’s an immigrant to this country. We both lived the American Dream. And when we saw that playing out — the humiliation, the embarrassment, and the lack of accountability — it just shook me.

Dave McCormick with supporter Austin Hepburn.

“As a patriot, you ask yourself what can we do? We think this seat is so important to Pennsylvania. It’s so important to the country. As this seat goes, the country likely goes. Pennsylvania needs a strong leader in the Senate, a strong fighter in the Senate,” McCormick added.

McCormick told a group of about 50 at the VFW post in Bensalem on Saturday there are many reasons Washington, D.C. needs to change.

“There are so many aspects of the country that feel like it’s headed in the wrong direction. We have 40-year high inflation, which is the result of these socialist economic policies. And that hurts all of us, but it really hurts working families all across Pennsylvania.”

McCormick, who served as undersecretary of the Treasury for international affairs under President George W. Bush, grew up on a family farm in Bloomsburg. His dad was chancellor at Bloomsburg University and chancellor for the Pennsylvania State System of Higher Education.

McCormick graduated from West Point and spent five years in the Army, where he served in the first Gulf War. He recently stepped down from his position as CEO of the hedge fund behemoth Bridgewater Associates.

McCormick has come under fire for his hedge fund’s investments in China, including an attack ad from a Dr. Mehmet Oz SuperPAC. But he noted that only 2 percent of Bridgewater’s investments were in China.

“China is the existential challenge of our time,” said McCormick. “It poses an economic risk. It poses a national security risk. We need a whole nation strategy to deal with it. And we need to reduce our dependence on China.”

Pharmaceuticals come from China and most semiconductors are made in nearby Taiwan. The United States’ investment and trade must not support the Chinese military or the oppression of its minority Uighurs, he said.

“The risk has grown in the last 10 years under (Chinese President) Xi,” he said. “Do you really want your drugs dependent on whether China is having a good day?

Meanwhile, America needs more skilled workers and must find a way for businesses to get capital to compete with Chinese businesses that are subsidized by the state.  More emphasis on technical training would help, he said.

“As military veteran…somebody who’s run businesses, created jobs, someone who’s served at the highest levels of government negotiating with China…That’s the kind of person you need to be able to go and fight in Washington.”

McCormick also discussed inflation, education, Pennsylvania’s natural gas industry, illegal immigration, China, Russia, and Ukraine.

And “the border situation is completely unsustainable,” said McCormick, who recently visited Yuma, Ariz., to see the situation first-hand. A year ago, there were 30 illegal border crossers caught every day at Yuma, he said. Now there are 1,000. The Border Patrol agents’ union has endorsed him.

“The border guards are completely overwhelmed,” he said. “Literally, people are just walking through.”

Deaths from fentanyl brought across the border are increasing, and so are related crimes.

“You all feel it here in Philadelphia and moving into the suburbs,” said McCormick.

On education, McCormick said, “I don’t recognize the history that’s being taught to our kids today, with parents not having adequate involvement. And I don’t recognize the cancel culture where you can’t have the right conversations and disagree. It’s a disaster…The American Dream we lived is not going to be available to our kids five years from now or 10 years from now.”

An audience member asked McCormick about the crisis with Ukraine and Russia.

“The world is more dangerous now than it’s ever been,” said McCormick. “I think Biden invited that with Afghanistan. If you show weakness the bullies will take advantage of it. And that’s what happening with Russia. That’s what I think is happening in China. So we need to project strength. And our military today, I’m worried about it.”

While the U.S. spends $80 billion on defense, “there’s a whole social agenda, ‘wokeness’ that’s taken over our military (instead of its) warfighting focus.”

And China is spending its military budget on next-generation technology while the U.S. is spending “90 percent on old platforms” instead of innovation for the future.

“Ukraine is a terrible mess,” he said, and he would “look hard” at sanctions against Russia if it crosses into Ukraine.

“I don’t think we want to be part of a land war in Ukraine. And if we get too focused on that, we have to look over our shoulder, because I think China will move on Taiwan. If we go into something militarily, it has to be so decisive and conclusive it has to be beyond doubt.”

Asked about natural gas, he said, “We have all this natural gas but we don’t have ways to get it there geographically.” A lot of natural gas is being transported by trucks when pipelines are safer. And Pennsylvania natural gas is being sent by pipelines to Louisiana and Texas rather than having a distribution center or port in Philadelphia.

Dave McCormick with state Sen. Robert “Tommy” Tomlinson.

“Our natural gas is the cleanest of the natural gases,” said McCormick. “And natural gas is cleaner than many other forms of energy…Mathematically, Biden shut down Keystone (pipeline), put the clamps on American gas, which is so much cleaner than Russian gas.

“Russian gas, which is much worse environmentally, is being shipped to Europe and the rest of the world so the greenhouse gases go up, our economic benefit goes down and our security in the world goes down because now we’re dependent on outside energy. It’s a madness that is taking place,” he said.

State Sen. Robert “Tommy” Tomlinson (R-Bucks) said McCormick is “truly a proud American, truly somebody capable of moving this country forward, truly somebody who believes in this country. I’m happy that we’ve got a candidate that I could feel that good about.”

And many in the crowd seemed to agree, leaving with McCormick yard signs and hats.

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NASCIMENTO: The China Challenge

China is the principal challenge to U.S. economic and political leadership in the world. With activities such as the Belt and Road Initiative, China is continuing to expand its influence economically and militarily with an eye on replacing U.S. leadership and Western democratic values with its own brand of statism. The challenge is seen in Beijing’s IP theft, culpability in the COVID-19 pandemic, aggressive behavior in Asia, disregard for human rights, and predatory economic practices.

Bringing China into the world economic and political order was done with the best of intentions across multiple U.S. administrations, both Democratic and Republican. The idea was that their increased participation in the global marketplace would bring China into the mainstream and drive internal reforms benefiting everyone. This has not happened. Instead, it has produced a military and economic juggernaut with little interest in maintaining the values we cherish.

The hope was also that globalization would benefit the American public by reducing costs and lifting more people up into the middle class. Cheaper goods would equal more disposable income for the average American, and more money to save.

The reality is that globalization has shipped the very jobs that allow that ascendancy to the middle class to China.

As global business leaders, in their search for higher earnings and larger profit margins, essentially outsourced the world’s supply chain to Beijing, we are left with the problems we see every day, from shortages of key industrial inputs to thinly stocked shelves.

By single threading the global supply chain, we have put China in the driver’s seat of the world’s economy. Even the basest components of items built in other countries are now sourced from China.

By taking away manufacturing jobs from the U.S., we make the population less financially stable, and drive wealth further into the pockets of a foreign adversary and in the US, an elite class.

Additionally, this is an urgent national security situation: With critical telecommunications gear, IP enabled security cameras, mobile phones, and other key components of 21st-century infrastructure manufactured in whole or in part in China, the global community has placed us all at the mercy of the whims of a “frenemy”.

At best, the global supply chain is at risk of the impact of disasters and pandemics on a country where hundreds of millions of people live below the poverty line; at worst, we have wrapped the world economy in dynamite and handed a potential foe the trigger. Imagine if China’s government, which centrally controls all businesses in that country, decided to stop producing cell phones or modems, or the parts that allow those devices to function? The result would be catastrophic for our internet-based economy.

The China challenge requires a strong U.S. response which I will work towards as a member of Congress. This response should include::

  1. Greater local investment in key technologies.  Intel’s recent decision to build a state of art chip plant in Ohio is to be commended, and replicated across industries.
  2. Tax incentives to encourage more manufacturing, R&D, and investment in worker training. Incidentally, the Delaware Valley is well-positioned to take advantage of this increased investment, with proximities to major arteries, abundant locations for factories and workplaces, and a diverse population.
  3.  Aggressive enforcement of IP laws and sanctions against nations that persist in the theft of Intellectual Property, to protect and encourage the innovation that will power the economy of the future.
  4. Increased investment in STEM education, educational choice, gifted programs, and skilled labor development. As a former School Board President, I am acutely aware of the challenges that public education faces, especially after the COVID-fueled “lost year(s)” that many children faced. In order to remain competitive on the global stage, education must be an urgent priority.

Mao Zedong said, “Communism is a hammer which we use to crush the enemy,” The United States can no longer allow itself to be a nail. Strong, clear-eyed leadership is required to address the China challenge.

 

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