Re: “Breakup is really about China”
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Message: Re: “Breakup is really about China”
Dr. Gao is Vice-Chairman of the board of directors of Qinghai Taifeng Pulead Lithium-Energy Technology Co. Ltd. (“Pulead”)
So, a big question might be: Is Qinghai Taifeng Pulead Lithium -Energy Technology Co. Ltd one of the Chinese S.O.E companies (State Owned Enterprise). Even if it isn't an S.O.E. example the question remains: How much influence might the CCP exert on the "new" LAC, if any.
It is more than a rhetorical question since the avowed purpose of separating the existing LAC into 2 separate entities is at the least a critical component as to whether or not the D.O.E. will grant a very large "Loan" to the new LAC in order to help finance the building of the proposed Thacker Pass lithium clay mine in Humboldt County, Nevada.
In simple terms: Does it float?
Many large companies in China are S.O.E. companies and the influence of the CCP is not limited to those companies that are S.O.E. companies. Any company in China with 3 employees or more who are CCP party members makes that company eligible to form a CCP "Committee". The article from Wikipedia, linked below, gives a peripheral view of the situation:
https://en.wikipedia.org/wiki/State-owned_enterprises_of_China
The corporate history of Qinghai Taifeng Pulead Lithium-Energy Technology Company, Ltd. is linked below:
http://www.pulead.com.cn/en/page.php?id=54
The company was founded in 1999 by Oriental Investment & Peking University.
- China’s Company Law, enacted in 1993, requires companies, at Article 19, to establish a CCP Committee “to carry out the activities of the Party,” and further requires companies to “provide the necessary conditions for the Party organizations to carry out their activities.”
- With about 92 million members and nearly 5 million party units across the nation, the Communist Party of China influences and oversees almost every aspect of life in China, from the government to the army, society and business.
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A common claim is that despite many Chinese investors being private corporations, they are still effectively controlled by the government through the Chinese Communist Party. It’s true that if there are more than three party members within any organisation in China, those members have the right to set up a Communist Party branch.
- At any rate, LAC has either set up a mechanism to devorce itself from even the remote suggestion that the "new" LAC to be formed during 4th Quarter of 2023 will be influenced in even the most miniscule way by the CPP or, to the contrary, the "separation" from such possibility is just an example of corporate smoke and mirrors.
- There really isn't a lot of middle ground on this and the bottom line with respect to the huge D.O.E. Loan being considered to help finance construction of Thacker Pass: How does D.O.E. and the U.S. government view this "divorce". Will the D.O.E. look at it as a "mission accomplished" or will the view it as an attempt at prestiditation by the existing LAC in orde to fool the D.O.E.?
- Inquiring readers may or may not want to know, but it is a potential problem that could contribute to the FOG of business now or later for LAC, "new" version as well as the "old" LAC.
- JMO
- Okiedo
-
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