Trump ‘owed tens of millions to the Bank of China’ - SupChina
Free

We're a new type of news publication

China news you won't read elsewhere.

Weekly Newsletter

Get a roundup of the most important and interesting stories coming out of China.

Podcasts

Sinica, TechBuzz China, and our 6 other shows are the undisputed champs of China podcasts. Listen now.

Feature Articles

Interactive, web-based deep dives into the real China.

Premium

Join the thousands of executives, diplomats, and journalists that rely on SupChina for daily analysis of the full China story.

Daily Newsletter

All the news, every day. Premium analysis directly from our Editor-in-Chief Jeremy Goldkorn.

24/7 Slack Community

Have China-related questions and want answers? Our Slack community is a place to learn, network, and opine.

Free Live Events & More

Monthly live conference calls with leading experts, free entry to SupChina live events in cities around the world, and more.

"A jewel in the crown of China reporting. I go to it, look for it daily. Why? It adds so much insight into the real China. Essential news, culture, color. I find SupChina superior."
— Max Baucus, former U.S. Ambassador to China

Free

We're a new type of news publication

China news you won't read elsewhere.

Weekly Newsletter

Get a roundup of the most important and interesting stories coming out of China.

Podcasts

Sinica, TechBuzz China, and our 6 other shows are the undisputed champs of China podcasts. Listen now.

Feature Articles

Interactive, web-based deep dives into the real China.

OR… for more in-depth analysis and an online community of China-focused professionals:

Learn About Premium Access Now!
Learn More
Minimize
Learn More
Minimize

Trump ‘owed tens of millions to the Bank of China’

5G 820x500

Trump calls his banker. Image source: SupChina illustration

The Politico article discussed below has been updated with a comment from the Bank of China: “Bank of China has not had any ownership interest in that loan since late November 2012.” The Bank of China said that a 2017 document listing it as a secured party having a financial interest in one of Trump’s portfolio buildings was a “technical error.” Politico corrected its headline to the past tense: “Trump owed tens of millions to Bank of China.”


Eleven years ago, then secretary of state Hillary Clinton asked Kevin Rudd, then prime minister of Australia, “How do you deal toughly with your banker?” She was referring, of course, to China’s significant holdings of U.S. treasury bonds, and the persistent worry that China could “weaponize” its debt holdings with a large-scale dump into the open markets. This worry is probably unfounded because China isn’t exactly like a banker for the U.S. — it buys American debt partially as a way to build up foreign reserves to manage its currency exchange rate, where it has a strong interest in maintaining stability.

But Clinton’s question turns out to be very personal for Donald Trump because, according to Politico, the Bank of China is literally his banker.

Trump himself is tens of millions of dollars in debt to China: In 2012, his real estate partner refinanced one of Trump’s most prized New York buildings for almost $1 billion. The debt includes $211 million from the state-owned Bank of China — its first loan of this kind in the U.S. — which matures in the middle of what could be Trump’s second term, financial records show.

Steps from Trump Tower in Manhattan, the 43-story 1290 Avenue of the Americas skyscraper spans an entire city block. Trump owns a 30 percent stake in the property valued at more than $1 billion, making it one of the priciest addresses in his portfolio, according to his financial disclosures.

The news of this loan will likely reverberate throughout the U.S. presidential campaign. As we noted earlier this week, Donald Trump, Joe Biden, and Senator Mitt Romney are among those actively vying for the “toughest on China” title in American politics. However, their fierce words, combined with the historically unfavorable views of China across U.S. demographics, are making life tough for Asian Americans, who are fearing an increase in racial abuse.

—Lucas Niewenhuis

Share
Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

2 Comments

  1. Van Wahlgren Reply

    What about Trump’s 13 year old Jeff Epstein Party House girlfriend? Isn’t that pedophilia? Trump is trying to squash this as best he can.

  2. Sam Hillcrest Reply

    The linked Politico article has been corrected after comment from the Bank of China

    “Within 22 days, the loan was securitized and sold into the [commercial mortgage-backed securities] market, as is a common practice in the industry. Bank of China has not had any ownership interest in that loan since late November 2012.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.