Washington has sent more than $1.3 billion to China and Russia. Who's following the money? (2024)

Sen. Joni Ernst and OpenTheBooks.com: Your tax dollars are trickling down to everything from Russian podcasts, to a cartoon exhibition to Wuhan research. We have some of the receipts.

Joni Ernst and Adam Andrzejewski| Opinion contributors

Washington is borrowing money from China to give to China.

You read that right.

While we owe the communist country more than $800 billion, our government sent nearly $500 millionto China to pay for everything from poetry projects to dangerous research on bats. And $870 million of U.S. tax dollars went to Russia. Those numbers could just be the tip of the iceberg.

The truth is, no one in Washington can account for the actual amount sent to these two adversarial nations – or anywhere else.

The federal government does not follow the trail of taxpayer dollars after the money leaves the Treasury to see where it ends up. This allows unaccountable intermediaries to act as pass-throughs, funneling money from your wallet into pointless projects without public scrutiny.

How does taxpayers' money end up in Wuhan lab?

The National Institutes of Health and the U.S. Agency for International Development (USAID), for example, granted millions of dollars to the EcoHealth Alliance. That shady organization then shared the cash with China’s notorious state-run Wuhan Institute of Virology for the risky research on bat coronaviruses that many believe sparked the COVID-19 pandemic.

Questions about how much was steered into the Wuhan institute and how this benefits the United States continue to go unanswered.

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A recentauditfrom the Government Accountability Office (GAO) concluded it was impossible to determine the full dollar amount being sent anywhere in China because Washington wasn’t keeping track.

But at least we have some of the receipts.

Not only NASA hardware but also soft diplomacy, like cartoons and podcasts

The auditors atOpenTheBooks.comteamed up with Sen. Joni Ernst’s investigators and talliedmore than $1.3 billionpaid to entities in China and Russiasince 2017.

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Here is what we found:

▶More than$490 millionfrom U.S. grants and contractswas paidto organizations in China.

▶The National School Lunch Program, intended to provide balanced meals, encourage nutrition and support domestic farmers, handed $1.6 million to Chinese grain exporters.

▶The State Department shelled out $58.7 million to entities in China, spending nearly $100,000 to support an exhibition ofNew Yorker cartoons by female artists “to increase awareness on gender equality and women’s empowerment” in the oppressive communist country. It spent $43,141 in Russia to support podcasts on “the topics of being queer, women in space, etc.” and $33,545 for podcasts about “people who survived a trauma, a unique experience, (or) did something extraordinary.”

▶The Pentagon paid $6 million to a Chinese company for technical support on defense “deployment and distribution command” software, which provides for delivery of transportation, equipment and supplies anywhere our servicemen and women are positioned.

▶NIHspent$298,000 in 2021 on ethics training for Chinese scientists. The reason? China was found woefully short on safety, integrity and honest reporting.Key problems included“research misconduct,” “inadequate ethical review,” “neglect for human subjects protections” and “publication fraud.”

▶After winning the space race against the Soviets nearly 55 years ago, NASA became dependent on the Russians to get back into orbit. In 2005, the agency subsidized the Russian Space Agency with a $4.1 billion contract for joint human space flights. Since 2017, NASA has paid $770.8 million to Russia to support space exploration, rockets and technology.

▶NIH sent more than $770,000 to a state-run lab in Russia to putcats on treadmills. That project – like the bat studies in Wuhan – was canceled after the studies wereexposed by the White Coat Waste Project.

This is why it is essential that Americans know exactly how and where their hard-earned tax dollars are being spent.

OpenTheBooks.comis committed to putting every dime the government spends online in real time to hold Washington accountable.To make that possible, Congress must pass the Tracking Receipts to Adversarial Countries for Knowledge of Spending (TRACKS) Act that would require every penny of taxpayer money sent to institutions in China, Russia and other hostile nations to be accounted for and publicly disclosed.

We will continue following the trail of your tax dollars, no matter how treacherous, so we can stop silly spending in its tracks!

Joni Ernst, a Republican, is the junior senator from Iowa.Adam Andrzejewskiis the founder and CEO of the nonprofitOpenTheBooks.com

Washington has sent more than $1.3 billion to China and Russia. Who's following the money? (2024)

FAQs

Why does America owe China money? ›

China focuses on export-led growth to help generate jobs. To keep its export prices low, China must keep the renminbi low compared to the U.S. dollar. U.S. debt to China comes in the form of U.S. Treasuries, largely due to their safety and stability.

Does the US give money to China? ›

In 2003 China received US$1.3 billion in aid, or about US$1 per capita. Like other countries in recent years, the United States has rapidly reduced its aid to China, reaching about $12 million from USAID for 2011. The aid goes to Tibetan communities, rule of law initiatives, and climate change policy.

How much money does Russia owe China? ›

Moscow's debt to Beijing totals almost $130 billion, or 7.3% of its GDP. However, the lack of grants to Russia speaks to the strength of the Russian economy and shows that China expects economic gains by investing there, according to AidData.

Why are we sending money to China? ›

Since 2015, the Department for Business, Energy and Industrial Strategy (BEIS), the Prosperity Fund and the Department of Health and Social Care (DHSC)7 have all initiated new aid partnerships with China, in areas such as research and innovation, health, climate change and mutual prosperity.

Who is the U.S. national debt owed to? ›

There are two kinds of national debt: intragovernmental and public. Intragovernmental is debt held by the Federal Reserve and Social Security and other government agencies. Public debt is held by the public: individual investors, institutions, foreign governments.

Who is the largest holder of the U.S. debt? ›

Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).

Who does the US give the most foreign aid to? ›

Israel. Israel has been the largest recipient of U.S. foreign aid since World War II. The country has accepted more than $300 billion since 1946, according to the Council on Foreign Relations, with more than $220 billion of the figure in military aid.

Does China rely on the US dollar? ›

China remains heavily dependent on the U.S. dollar for pricing and settling commodities contracts, which means Chinese businesses face higher transaction costs, and its economy is more vulnerable to global volatility and geopolitical tensions.

Does China buy anything from the USA? ›

U.S. goods exports to China in 2022 were $154.0 billion, up 1.7 percent ($2.6 billion) from 2021 and up 39 percent from 2012. U.S. goods imports from China totaled $536.3 billion in 2022, up 6.3 percent ($32.0 billion) from 2021, and up 26 percent from 2012.

What country is most in debt to China? ›

These figures are as of 2022, and come from the World Bank (accessed via Yahoo Finance). The data used to make this graphic can be found in the table below. This dataset highlights Pakistan and Angola as having the largest debts to China by a wide margin.

Is Russia in debt to any country? ›

Russia is usually one of the ten least-indebted countries in the world. Russia's debt is currently at a total of just over 302 billion USD. Most of Russia's external debt is private.

Who owns most of China's debt? ›

[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).

Is China getting rid of cash? ›

“Elderly Chinese still often prefer to pay with cash and some struggle with using mobile payments.” Less than a year ago, state media was lauding China's trajectory towards becoming the world's top country for cashless transactions. Xinhua reported cash had dropped to just 3.7% of the total money in circulation.

Can China send money to USA? ›

To send money in CNY to the USA from China, you pay a small, flat fee of 94.26 CNY + 0.66% of the amount that's converted (you'll always see the total cost upfront).

Why does China want to keep its currency low? ›

China pegged its currency from 1997 to 2005 to the U.S. dollar but since has managed its currency against a basket of currencies. The effect of the peg and the low currency is that Chinese exports are cheaper and, therefore, more attractive compared to those of other nations.

Why does the US keep borrowing money? ›

The federal government needs to borrow money to pay its bills when its ongoing spending activities and investments cannot be funded by federal revenues alone. Decreases in federal revenue are largely due to either a decrease in tax rates or individuals or corporations making less money.

What would happen if the US stopped trading with China? ›

The costs to the U.S. economy if we were to prohibit domestic companies (impacting companies such as GE, Honeywell, Collins, and Parker Aerospace) from engaging with COMAC would be significant: The U.S. Chamber of Commerce estimates that losing access to China's aviation market would translate into a loss of $38 ...

What does China own in the United States? ›

"China owns $870 billion in U.S. Treasuries that finance our debt. And they either own or have a huge portion of the Chicago Stock Exchange, AMC movie theaters, General Electric's appliance division, General Motors, and Smithfield Foods just to name a few."

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