A U.S. Republican congressman urged the Trump administration to review millions in coronavirus stimulus loans paid to U.S. companies with ties to China’s aviation and defense industries, amid deepening tensions between Beijing and Washington, Reuters reported. The letter by Rep. Jim Banks (R-Ind.) is addressed to Small Business Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin, tasked with overseeing the Paycheck Protection Program. That program, which loans money to firms to encourage them to retain employees during the coronavirus-related shutdown, has drawn fire for technical glitches, a lack of transparency and for doling out funds to large companies with ample access to credit. Banks called for the probe, citing loans to companies whose Chinese parents, including aircraft manufacturer Aviation Industry Corporation of China (AVIC) and weapons maker China Aerospace Science and Industry Corporation (CASIC), were recently designated as owned or controlled by the Chinese military by the U.S. Defense Department. The companies include Continental Aerospace Technologies Inc, which is owned by AVIC and received $5 million to 10 million from the program. It also includes Honghua America LLC, the U.S.- based subsidiary of Chinese drill rig manufacturer Honghua Group, which is in turn owned by CASIC. Honghua received up to $1 million, according to SBA data.
