Tag Archive for: smithfield foods

Is American Pork Ending Up In The Bellies Of Chinese Soldiers?

Communist China’s military could be reaping the benefits of the takeover of a U.S agricultural giant.

America’s largest pork producer was exporting massive quantities of pork to its Chinese “sister company” as it stockpiled food for the Chinese military, according to a Daily Caller News Foundation review of corporate records and Chinese state-run media reports.

Smithfield Foods, owner of roughly 150,000 acres of U.S. land and operator of dozens of feed mills and production plants, has shipped hundreds of thousands of tons of pork to its China-based parent company WH Group and sister company Shuanghui Investment and Development Co. (Shuanghui) since being acquired in 2013, according to corporate and Chinese government records as well as state-run media reports.

Shuanghui has extensive ties to the People’s Liberation Army (PLA), which it touts on its website, and is responsible for developing food for China’s military to use on the battlefield, according to the PLA-sponsored China Military News.

Shuanghui also operates a food “mobilization center” for the PLA in Henan province, and has done so since 2009, according to a 2022 Shuanghui news release. Shuanghui’s mobilization center stockpiles food, including pork, to meet the PLA’s emergency response needs, and Chinese state-run reports indicate that Shuanghui has distributed food from this stockpile to Chinese soldiers on several occasions in recent years.

A December 2023 report from the Luohe municipal government in Henan province indicates the military stockpile is still active and under Shuanghui’s management.

While Shuanghui doesn’t disclose where the pork it supplies the PLA originates from, it’s very likely that at least some U.S. pork product is being supplied to the PLA, according to Brian O’Shea, a former military and intelligence analyst.

“My opinion would be that the Chinese government is giving this superior U.S. pork to their soldiers,” O’Shea told the DCNF based on his understanding of Smithfield’s central role in Shuanghui’s pork supply chain and Shuanghui’s extensive relationship with the PLA.

“At these mobilization centers, there’s going to be a Smithfield pile and a Chinese domestic pork pile, and the Chinese domestic pork is most likely going to the civilians, whereas the superior pork is going to the Chinese military,” O’Shea said.

Neither Smithfield nor Shuanghui responded to multiple requests for comment.

‘A Unified State’

WH Group acquired Smithfield in 2013 for $7.1 billion. At the time, WH Group Chairman Wan Long said the acquisition would allow his companies to “meet the growing demand in China for pork by importing high-quality meat products from the United States,” adding the merger “provided Smithfield the opportunity to expand its offering of products to China through Shuanghui’s distribution network.”

The DCNF recently reported that WH Group’s chairman and four other executives are Chinese Communist Party (CCP) members. WH Group’s chairman and several top executives also hold, or previously held, positions with the Chinese government, the DCNF found.

WH Group’s leadership includes both Shuanghui and Smithfield executives, according to Reuters.

In 2013, the U.S.-China Economic and Security Review Commission’s annual report characterized Smithfield’s acquisition by WH Group as “part of a broader trend of Chinese global investment in farm assets or food technologies.”

“China’s acquisitions in agriculture and other sectors are being driven by the desire to secure higher volumes of safe products and, in the long term, access to advanced production and processing technologies,” the commission wrote in its report.

“We’ve got to remember that China is a unified state,” Gordon Chang, distinguished senior fellow at the Gatestone Institute, told the DCNF. “It operates under the direction of the Communist Party, which demands absolute obedience from all individuals and all entities.”

Since 2013, Smithfield’s exports to China have exponentially increased. Shuanghui constructed a $110 million Smithfield-branded factory in China in 2015 that exclusively processes U.S.-raised Smithfield pork, and the company developed an e-commerce portal in 2017 that sells Smithfield products.

In the wake of these developments, Smithfield’s pork exports to China exploded from roughly 83,000 tons in 2018 to approximately 335,000 tons in 2020, according to S&P Global Market Intelligence data obtained by the DCNF.

Click here to view S&P Global Market Intelligence infographic U.S. Exports of Pork Linked to Smithfield (tons)

“There was an unusual increase in sales of entire swine carcasses to China during 2019,” according to a U.S. Department of Agriculture Economic Research Service report. “This increase reflects the retooling of at least one U.S. Smithfield Foods plant to produce carcasses for shipment to a plant in China that had excess processing capacity due to the shortage of hogs in the country.”

Shuanghui “used excess capacity in its Chinese plant to make processed products from the carcasses,” the report added.

Between 2015 and 2020, 80% of Shuanghui’s imported meat came from Smithfield, Chinese state-run media outlet The Paper reported. Shuanghui characterized Smithfield as its “primary” pork supplier that same year.

Since then, Smithfield has continued to export hundreds of thousands of tons of pork to China. S&P Global Market Intelligence’s data shows Smithfield sent 242,672 tons of pork to China in 2021 and 124,886 tons in 2022. Smithfield exports to China hit 101,791 tons in 2023, the data shows.

A November 2023 financial briefing published by Chinese state-run firm Guosen Securities, which used data from compliance reports, forecast that Shuanghui will continue to rely on Smithfield pork imports for the foreseeable future.

“Shuanghui Development’s meat product offerings are expected to rely on the importation of Smithfield Foods’ Western products, and the synergy of the two large platforms will increasingly arise,” Guosen Securities reported.

‘My Love Spills Into Every Army Base’

While Smithfield has been sending pork to Shuanghui, the Henan-based company was supplying the PLA, according to corporate records seen by the DCNF. In fact, Shuanghui’s relationship with the PLA predates WH Group’s acquisition of Smithfield.

In 2008, the Chinese government proposed that large enterprises assist in creating provincial military stockpiles for various goods like food at so-called “mobilization centers,” and, shortly thereafter, Shuanghui officials applied for the firm to establish a “Non-Staple Foods Mobilization Center,” according to a PLA Daily article that was reposted by Chinese news outlet Sina.

The PLA first called upon Shuanghui’s mobilization center in June 2009 while it was still under construction, asking for assistance in delivering 10 types of foods to Chinese soldiers approximately 125 miles away, PLA Daily reported.

Shuanghui’s mobilization center “integrates the military with the civilian” and “blends peacetime and wartime” in order to “guarantee an emergency response,” according to an archived December 2009 company news release.

That same month, Shuanghui head Wan Long, who also heads WH Group, presided over the opening ceremony of the firm’s mobilization center, which several high-ranking Chinese military personnel attended, according to the archived post.

By 2015, the mobilization center reportedly employed more than 2,200 veterans. These veterans routinely simulate emergency situations, such as delivering food goods to front-line positions in wartime, according to state-run China News.

Shuanghui President Ma Xiangjie, who sits on WH Group’s board and is a CCP member, serves as the mobilization center’s director, according to a company announcement from December 2022. In that same announcement, the company touted that the PLA had named Ma Xiangjie as one of Henan’s “Top 10 Military Supporters.”

Company and Chinese military records reviewed by the DCNF indicate that PLA officers have inspected Shuanghui’s mobilization center multiple times in recent years. During a December 2021 inspection, PLA officers presented Ma Xiangjie with a ceremonial banner that read: “My heart is bound to the Great Wall of steel, my love spills into every army base.”

A December 2022 Shuanghui announcement states the company’s mobilization center had at some point prior “successfully developed an ABC set meal series of military rations.” The U.S. Army describes A-rations as “perishable foods,” B-rations as “nonperishable foods” and C-rations as a “balanced meal in a can.”

Wan Long and Ma Xiangjie did not respond to multiple requests for comment.

‘Food Security’

Chinese social media posts show Shuanghui has on multiple occasions distributed pork from its mobilization center to Chinese military personnel.

In February 2020, for instance, Shuanghui announced it had donated meat to the PLA as well as Wuhan military medical staff working on the front lines of the COVID-19 pandemic. Shuanghui’s announcement featured photographs of the firm’s truck delivering boxes of pork sausages to PLA soldiers.

Smithfield exported at least 335,411 tons of pork to China in 2020, S&P data shows.

Chinese government documents show that Smithfield was sending pork directly to Shuanghui during the pandemic. China’s General Administration of Customs reporting it had rejected approximately 27 tons of Smithfield “frozen bone-in pork” sent to a Shuanghui subsidiary sometime before August 2020, citing an issue with the shipment’s certificate of goods.

Shuanghui has also bragged about donating medical supplies to the PLA during the pandemic.

In fact, People’s Daily, which is the CCP’s official media arm, reported in February 2020 that Shuanghui had launched a global campaign to procure medical supplies for the Chinese military. China’s State Council supported Shuanghui by helping medical supplies obtained abroad pass smoothly through customs, People’s Daily reported.

“In the early stages of the COVID-19 outbreak, WH Group’s subsidiary Shuanghui Development purchased anti-epidemic materials, including protective clothing, isolation gowns, masks and goggles overseas to support front-line medical staff in Hubei Province,” reads an English-language version of an April 2020 WH Group release. “Shuanghui also donated living materials and epidemic prevention materials to military medical workers at Wuhan Huoshenshan Hospital through the Luohe military sub-district.”

Moreover, the People’s Daily article also features a photo of a Smithfield truck outside a warehouse with a caption reading “overseas procurement” and credits Shuanghui for the picture.

Other images show what appears to be a Caucasian man moving rectangular boxes purportedly full of medical supplies with a forklift and a UPS plane on a tarmac beside pallets of boxes. Another photo appears to show workers and delivery trucks at Shuanghui’s headquarters preparing to deliver supplies to the Chinese military, as reported in a Shuanghui corporate release less than a week later.

“The Chinese Communist Party is increasingly focused on acquiring, illicitly or otherwise, agricultural technologies and supply chains,” Wisconsin Republican Rep. Mike Gallagher, chair of the House Select Committee on the CCP, told the DCNF. “We must strengthen our food security before it is too late.”

‘Chinese Communist Control’

Shuanghui also apparently agreed to supply a Chinese state-owned defense firm with Smithfield products, according to a 2022 Shuanghui Chinese social media post to which the company’s website also links.

During a November 2022 conference in Guangdong province, Shuanghui signed a strategic partnership agreement with the Aviation Industry Corporation of China (AVIC) to manufacture customized products in order to “support the rapid development of China’s aviation industry,” according to a company social media post.

Photos from the November 2022 event appear to show Smithfield bacon alongside other Shuanghui products involved in the defense contractor deal. The U.S. government sanctioned AVIC in 2021 “for operating or having operated in the defense and related materiel sector of the economy of the PRC.”

“People are just now starting to understand the consequences of the naïve policymaking that dominated Washington for the past couple decades,” Florida Republican Sen. Marco Rubio told the DCNF. “Chinese communist control of American businesses is a challenge we have to confront before a crisis.”

AUTHOR

PHILIP LENCZYCKI

Daily Caller News Foundation investigative reporter, political journalist, and China watcher. Twitter: @LenczyckiPhilip

RELATED ARTICLES:

EXCLUSIVE: Leadership Of Major US Landowner Chock-Full ‘Of Chinese Communist Party Members

James Biden: My Brother Gave Me $40K, $200K Loans For Chinese Company

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Leadership Of Major U.S. Landowner Chock-Full Of Chinese Communist Party Members

Top executives at Hong Kong-based WH Group Limited, the world’s largest pork producer that controls vast swaths of U.S. farmland through its American subsidiary, are Chinese Communist Party (CCP) members, according to a Daily Caller News Foundation review of corporate records and state-run media reports.

Records and reports reviewed by the DCNF identify four top executives and the chairman of the pork giant as CCP members with extensive ties to the Chinese government. WH Group controls nearly 150,000 acres of land across 29 U.S. states through its subsidiary Smithfield Foods, a family-run business established in 1936, which it purchased for $7.1 billion in 2013. While a keyword search on Smithfield’s website returned only two articles mentioning the firm’s relationship with WH Group, neither of the two articles mentioned China. An online map of Smithfield’s global business activities does not list any operations in, or connection to, Asia, despite archived reports from their website suggesting otherwise.

Revelations about WH Group’s CCP and Chinese government ties, which the DCNF found by cross-referencing the firm’s roster with Chinese-language news reports and corporate records, come as Republicans push for bans on Chinese rural land purchases, in particular, those close to U.S. military bases.

“It is no joke to join the Chinese Communist Party,” Matt Shoemaker, a former Defense Intelligence Agency officer, told the DCNF. “You cannot just walk in and sign-up. You have to show that you are a true believer.”

Several states, including Florida, have taken legislative and executive action to ban Chinese ownership of U.S. farmland. Recently, Missouri Gov. Mike Parson issued an executive order banning such purchases near military installations. GOP lawmakers also recently pressed the Biden administration to launch an investigation into the second-largest foreign owner of U.S. land after his CCP membership came to light.

“No foreign government should be owning American farmland,” said Shoemaker, who is running for Congress in North Carolina as a Republican. “It is a national security issue, for obvious reasons.”

WH Group’s chairman, Wan Long, as well as multiple board members and some senior management were identified as CCP members in a 2022 Chinese-language stock exchange filing from a subsidiary called Shuanghui Investment and Development Co. (SIDC). WH Group and Chinese corporate records from SIDC also show that WH Group’s chairman and several top executives hold, or previously held, Chinese government positions.

Between 2010 and 2021, the amount of U.S. land owned by Chinese entities skyrocketed from 13,730 acres to 383,935 acres, according to USDA reports.

Smithfield operates half a dozen distribution centers, nearly 20 direct store delivery services, 36 feed mills, as well as more than 40 production plants and 2,400 farms across 29 U.S. states, according to the firm’s website. In total, WH Group owns 146,000 acres in the U.S., according to a 2018 report by the Economic Research Service of the U.S. Department of Agriculture (USDA).

“Smithfield Foods, Inc. holds a substantial market share in the U.S. pork industry, accounting for approximately 26% of the total market share,” according to trade publication Essential Protein Trade & Shipping News.

In a bygone era, GOP governors might have welcomed Chinese investment into rural industries and communities. Now, it’s become a major source of concern as relations between the U.S. and China continue to sour.

South Dakota Republican Gov. Kristi Noem told the DCNF her office has had “a lot of hard conversations” with Smithfield’s leadership, adding she now believes the company poses a national security threat.

“Any time it felt like we would have the opportunity to work together, it ended up not going as well as I hoped,” Noem said. “I think a lot of that has to do with the fact that Smithfield is owned by China.”

Smithfield did not respond to multiple requests for comment.

‘The CCP’s Long-Term Strategy’

WH Group Chairman Wan Long is among the company’s senior leadership who is a CCP member with Chinese government ties, a DCNF review of corporate business filings and Chinese state media reports found.

An archived business profile on SIDC’s website identifies Wan Long as a CCP member.

SIDC is “the largest animal protein company in Asia” and its products include “chilled fresh pork and packaged meat products,” according to Smithfield’s website.

The DCNF reviewed and carefully translated key sections of SIDC’s Chinese-language website, which contains extensive information about WH Group executives’ CCP and Chinese government ties that are absent from WH Group’s English-language website.

Born in 1940, Wan Long joined the People’s Liberation Army (PLA) at the age of 20 before entering China’s meat industry, according to Chinese state-run media outlet People’s Daily. Wan Long has since earned various Chinese government positions and state awards, his archived SIDC profile states.

Between 1998 and 2018, Wan Long served as a representative to the National People’s Congress, according to his archived SIDC profile. The National People’s Congress operates “under the leadership” of the CCP, and its officials are “invariably influential members of the CCP and leaders of major mass organizations,” according to the Congressional Executive Commission on China.

SIDC’s archived website also notes that Wan Long has received a “special allowance” from China’s State Council. This refers to a reward system created to “strengthen and improve the work of the Party’s intellectuals,” according to the state-run China News Service. The tax-free reward ranges from a monthly stipend of roughly $85 to an approximately $2,800 lump sum payment, according to China’s Ministry of Human Resources and Social Security. However, it is unclear if Wan Long still receives this government reward.

Wan Long also earned the honorific “senior political engineer” from the Chinese government, according to his archived SIDC profile. Senior political engineers are required to possess a “relatively systemic grasp of Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory,” according to the State Council’s State-Owned Assets Supervision and Administration Commission.

China’s United Front Work Department (UFWD) also named Wan Long as one of 100 “Outstanding Private Entrepreneurs In The 40 Years Of Reform And Opening-Up” in 2018, according to the All-China Federation Of Industry And Commerce, a UFWD subordinate agency that co-sponsored the award.

The UFWD engages in “influence activities and intelligence operations,” according to the House Select Committee on the CCP.

SIDC’s 2022 filing on the Shenzhen Stock Exchange also identifies three WH Group senior managers — Qiao Haili, Wang Yufen, Liu Songtao — and WH Group executive director Ma Xiangjie as CCP members. All four WH Group executives hold high-level positions at SIDC.

Ma Xiangjie was also elected to serve as a National People’s Congress delegate in Henan province, according to that government body’s website. Delegates are elected by “the People’s congresses at the provincial level as well as by the People’s Liberation Army,” according to the Congressional-Executive Commission on China.

A local branch of the All-China Federation Of Industry And Commerce named Ma Xiangjie as one of Henan province’s people of the year between 2019 and 2020, according to the UFWD-affiliate’s website.

Yet, it is unclear just how many CCP members WH Group employs.

SIDC, on the other hand, has employed hundreds, according to the Communist Party Member Network’s website, which is operated by the CCP’s Organization Department.

“In recent years, over 300 new Party members have been recruited, strengthening the Party’s troops,” reads SIDC’s Communist Party Member Network profile. “Currently, Shuanghui Development’s senior executives include 17 Party members, constituting 85% [of all senior executives]; six business department general managers are Party members; six Party members are among the seven management department directors; all project managers are Party members; and 47% of the firm’s mid-level cadre are Party members.”

‘Update CFIUS’

When WH Group purchased Smithfield in 2013, the acquisition “received clearance” from the Committee on Foreign Investment in the United States (CFIUS).

CFIUS reviews foreign investments into the U.S. on the grounds of national security, the Treasury Department website states. Multiple U.S. government agencies participate in the CFIUS process, including the Department of Justice, the Department of Defense and others, according to the Treasury Department, which is also involved in that process.

“We are pleased that this transaction has been cleared by CFIUS, and we thank the Committee for its careful attention to this review,” Smithfield’s CEO and president at the time, C. Larry Pope, said at the time, according to an SEC filing.

Over a decade later, House Republicans see CFIUS’ approval of WH Group’s purchase of Smithfield as a case study in why the body needs to be reformed.

“What we need to do is update CFIUS to ensure that it has jurisdiction over all foreign adversary land purchases, and to ensure that it has the ability to consider U.S. food security as a factor in assessing the potential risk of a transaction,” Wisconsin Republican Rep. Mike Gallagher, who chairs the House Select Committee on the CCP, told the DCNF.

Iowa Republican Rep. Ashley Hinson said the CCP has “nefariously exploited loopholes to buy U.S. land, so they can exert control over our food supply and undermine our national security.”

“This is all part of the CCP’s long-term strategy to hurt America and our interests — whether it’s garnering valuable U.S. military intelligence or interfering with our food supply chain,” Hinson told the DCNF. “We cannot allow another acre of U.S. land to get into the hands of the CCP.”

WH Group, SIDC, Wan Long and CFIUS did not respond to multiple requests for comment.

AUTHOR

PHILIP LENCZYCKI

Investigative reporter.

RELATED ARTICLE: EXCLUSIVE: Second-Largest Foreign Owner Of US Land Is A Chinese Communist Party Member

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.


All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.