Fraudulent Acquisition of U.S. Relief Loans Leads to Charges Against Another Chinese State-Owned Enterprise

U.S.-China Confrontation. (Video screenshot)

[People News] According to Voice of America, on August 4, Eastern Time, the U.S. Department of Justice's New Jersey District Attorney announced that China Jushi Co., Ltd., a Chinese fiberglass manufacturer, reached a settlement with the U.S. government through its South Carolina subsidiary. The company paid $5,075,823 to resolve allegations of fraudulently obtaining a 'Paycheck Protection Program' (PPP) loan, which violated the False Claims Act.

Founded in 1993 and headquartered in Tongxiang, Zhejiang, China Jushi Co., Ltd. is the largest and most technologically advanced fiberglass manufacturer in the world, primarily engaged in the production and sale of fiberglass and related products. The company is effectively controlled by the China National Building Material Group, which is overseen by the State-owned Assets Supervision and Administration Commission of the State Council, providing it with significant advantages as a central state enterprise.

The company operates six major production bases located in Tongxiang, Zhejiang; Jiujiang, Jiangxi; Chengdu, Sichuan; Huai'an, Jiangsu; and internationally in Egypt and the United States. According to the latest official financial report from Jushi, as of the end of the first quarter of 2026, the company's total assets were valued at 55.297 billion yuan.

In other words, this is a financially robust state-owned enterprise of the Chinese Communist Party (CCP). However, this seemingly well-off enterprise deceived the American public during the U.S. government's subsidy programs in the early years of the pandemic.

According to allegations from U.S. federal prosecutors, from July 2020 to June 21, 2021, the subsidiary of China National Offshore Oil Corporation, CNOOC USA, received a PPP loan and loan forgiveness totaling $3.59 million, including interest.

Many Americans still have vivid memories of the hardships faced during the pandemic. Numerous small and medium-sized businesses struggled to survive due to a decline in customers. To assist these businesses in maintaining operations and continuing to pay their employees, the U.S. federal government established the PPP relief program in March 2020, which ceased accepting new applications on May 31, 2021.

Just as the CCP was aware that the virus released from the Wuhan laboratory was spreading globally, resulting in significant loss of life, CNOOC was fully cognizant of its size and that the U.S. government was providing aid specifically to small and medium-sized enterprises. Yet, it knowingly misrepresented its qualifications to fraudulently obtain PPP loans. What kind of mentality does this reflect? Is this not also a minor act of the CCP attempting to undermine the U.S.?

So, how was the fraud committed by the Giant Stone Company uncovered? According to the settlement agreement, it was an informant who reported the case. It is reported that, under the 'whistleblower' provisions of the U.S. False Claims Act, the whistleblower received 10% of the over 5 million dollars. 

Reports suggest that China National Building Material Group Corporation is not the first Chinese firm implicated in the fraudulent acquisition of PPP loans. In 2025, the U.S. Department of Justice announced three settlements involving U.S. subsidiaries of Chinese companies accused of fraudulently obtaining PPP loans, thus violating the False Claims Act.

The first of these companies is the American subsidiary of Yapp Automotive Parts Co., Ltd., a Chinese A-share listed company, which agreed to pay over $14.2 million last February. This company specializes in supplying automotive fuel tank systems and components for new energy vehicles, and its actual controller is the State Development and Investment Corporation, a central enterprise overseen by the State-owned Assets Supervision and Administration Commission of the State Council of the Communist Party of China.

The second company is Beijing West Industries (BWI, now known as Beijing West Group), a high-end chassis supplier that focuses on automotive braking and suspension systems. Its origins trace back to the American company Delco, which was later acquired and developed by Chinese state-owned assets. It is currently controlled by local state-owned entities, including Zhangjiakou Guokong Asset Management Group and Zhangjiakou Industrial Investment Holding Group. Its three U.S. subsidiaries—BWI North America, BWI Indiana, and BWI Chassis Power North America—agreed to pay over $21.66 million last August.

The third company is China Greenland Group, which is partially owned by state-owned enterprises regulated by the Shanghai State-owned Assets Supervision and Administration Commission. Its three U.S. subsidiaries agreed to pay over $7.3 million last December.

Similar to the Giant Stone Company, the three companies mentioned above, which are backed by the Chinese Communist Party (CCP), knowingly chose to fraudulently obtain loans from the United States despite not meeting the necessary requirements. Is this behavior a result of directives from the CCP, or is it indicative of an inherent greed and pervasive influence that the CCP has instilled in them? If it weren't for Trump's intervention, how would the CCP have continued to harm and exploit the United States?

(Originally published in People News) △