Howard Lutnick faces tough questions after getting picked by Trump for top-level trade positions (which include Commerce Secretary and US Trade Representative) in mid-november
His company BGC Groups Chinese connection is raising red-flags: theres a multi-million dollar joint-venture with state-owned China Credit Trust - making it the first-ever foreign-chinese partnership in Beijingʼs currency trading scene around 14 years ago. The stake (valued at about $28 million) represents a deep-rooted business relationship with Beijingʼs financial sector
Lutnicks other firm‚ Cantor Fitzgerald has been quite busy helping Chinese businesses enter US markets; they managed several IPOʼs including:
- Adlai Nortyeʼs listing last year
- GD Culture Groupʼs market entry
- Aesthetic Medical International (which got de-listed early this year)
Mr. Lutnickʼs conflicts of interest in China appear to be substantial. How can the American people expect someone who is on the Chinese governmentʼs payroll to help level the playing field with China for working Americans?
The situation gets more complex due to BGCʼs connection with PICC Group - a state enterprise thats working with Huawei (a tech company under US restrictions). Ethics expert Kathleen Clark points out this creates a tricky situation: “its essentially making him business partners with Chinese government“
The whole thing brings up some real questions about following US laws; while direct policy impacts on his business might not break conflict-of-interest rules - theres still that pesky constitutional emoluments clause to think about