The Double Cross


In an Idaho Statesman article published on December 31, 2010, titled, Chinese company eyes Boise, it said the following:

A Chinese national company is interested in developing a 10,000- to 30,000-acre technology zone for industry, retail centers and homes south of the Boise Airport.

“I think China’s coming over here shows they are willing to collaborate on the reinvigoration of the American industrial base,” said Jeff Don, CEO of Eagle-based C3, which is acting as an Idaho representative for the Chinese company, called Sinomach for short.

Sinomach is China’s third-largest contractor, with more than $14 billion in sales last year. It has been active in more than 130 countries in Asia, Africa, Latin America, Russia and Eastern Europe as general contractor for large infrastructure and building projects.

Sinomach is not really a private corporation as you can see from the organization chart, "State owned assets" and the Communist Party of China is prominent in the organization chart for Sinomach. 

The reason the Communist Chinese government is looking to invest in Idaho is because Governor Butch Otter has made it a point to seek "foreign direct investment" with his Project 60 plan.  A June 18, 2010 press release explains:



By Governor C.L. “Butch” Otter

Selling isn’t hard when you have a good product to offer. Earlier this month, I had the best products in the world to offer the Chinese market – Idaho products. And the Chinese were ready to buy.

My trade mission to China – specifically the cities of Beijing, Shanghai and Guangzhou – will bring in many millions of dollars that will turn into many good jobs for Idaho workers in the months and years to come. It set the stage for future business deals and ongoing relationships between Idaho businesses and the world’s largest and fastest-growing market.

The purpose of the trade mission is a key part of my Project 60 initiative, our comprehensive plan to grow Idaho’s economy and create more career-path employment opportunities. Reaching out to international markets and driving investment here in Idaho must occur in order for our businesses to flourish and grow.

My role as Governor was to open doors for Idaho businesses traveling with me in China, a country with a deep respect and appreciation for the role of relationship-building in the economic process. Once the doors were open, then it was up to the companies and industry representatives who accompanied me to sell their wares and negotiate deals. They did a great job. As a result, we have some great successes to talk about.

Letters of intent were signed for $10 million in investments for mining and real estate development activities in Idaho. The funding will go through a private entity called the Idaho State Regional Center (ISRC), a federally approved EB-5 regional center that is authorized to facilitate immigration opportunities for foreign nationals who invest at least $500,000 in projects that create at least ten American jobs per investor.



As the graphic on the Project 60 website shows, the purpose of Butch Otter's trips to China were to obtain inward foreign direct investment which is in direct contradiction to what the words say about seeking markets for Idaho products - unless of course, you consider American citizenship "a product" because right underneath the graphic, it talks about the EB-5 immigrant visa. For $500,000 or $1 million depending on location, foreigners can buy American citizenship.


But, there seems to be a conundrum.  China also has technology parks and is also seeking inward foreign direct investment.  Why would China build a technology park and seek inward foreign direct investment while at the same time, they invest in a technology park in Idaho???


How can we explain this exchange system of foreign direct investment?   How about this:



Vicky Davis
January 4, 2011

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