A new AidData report shows China’s state banks quietly pumped $200 billion into US companies over 25 years. Many loans passed through shell firms in the Cayman Islands, Bermuda and Delaware. These layers helped hide the money’s true origin. Researchers say this created a vast and secret financial network that few understood until now.
Much of the funding supported Chinese firms buying stakes in US companies tied to robotics, semiconductors and biotechnology. These sectors power defense systems, telecom networks and advanced manufacturing. Analysts warn that China gained leverage over sensitive technology. Former White House adviser William Henagan said China moved strategically while others underestimated the threat.
AidData found China lent more than $2 trillion worldwide since 2000. Many loans targeted rich nations, including the UK, Germany and Australia. The scale surprised even experts who track China’s global rise.
Some US deals raised major alarms. In 2015, Chinese banks funded the purchase of Ironshore, a US insurer used by CIA and FBI personnel. Regulators later forced a divestment after discovering the hidden state role. Chinese financing also backed moves to acquire robotics makers and chip companies in the US and Europe.
Researchers say China’s spending now aims at geo-economic power, not development. US officials argue that stronger screening is needed as China improves its tactics.
