Canada "freezes" AIIB membership after CCP infiltration claims, Ex-Samsung VP arrested for stealing tech to build chip plant in China & US rejoins UNESCO over China concerns -- China Boss News 6.19.23

Newsletter -- *China Boss will be on holiday Friday, June 23 until Monday, July 10. (Next update 7.14.23)

By N509FZ - Own work, CC BY-SA 4.0, WikiCommons

The Big Story in China Business

Canada "freezes" AIIB membership after exec’s CCP infiltration claims

"Canada has frozen all activity at the multilateral lender known as ‘China’s World Bank’ after a top official resigned alleging the institution was run by Communist party members who ‘operate like an internal secret police,’” the Financial Times reported. Beijing calls the accusation "purse sensational hype and outright lies," while the AIIB said it was "baseless and disappointing."

FT:

The furore erupted after [Canadian director-general for communications Bob Pickard] wrote on Twitter that “as a patriotic Canadian”, his only course was to resign and leave Beijing.

“These people are like an invisible government inside the bank and this is what I can’t be part of,” Pickard told the Financial Times from Tokyo. “I don’t want to be a useful idiot.”

Picard’s comments prompted a quick response from Ottawa, who said it would "halt all government-led activity" at AIIB and initiate "a review of the allegations and Canada's 'involvement.”

The controversy threatens to erupt in an all-out scandal that could present an existential challenge for the Beijing-based development bank, which was established by Xi Jinping in 2016 as an alternative to the Bretton Woods system.

CNN:

After learning of his departure, Canadian Finance Minister Chrystia Freeland said she had ordered the suspension of all government-led activity — and an inquiry — into the matter.

She said Canada would discuss the matter with allies and partners, raising the specter of more AIIB members suspending their ties.

Reuters reported that Pickard "was advised to flee the country" shortly after announcing his resignation.

Reuters:

"I high-tailed it out of there as soon as possible," Pickard told Reuters in a phone interview, adding he fled to Japan after tendering his resignation earlier this week.

"I've been advised not to set foot in China anytime soon. From a country where the two Michaels were kidnapped by the government, we're maybe a little more sensitive or concerned about such things," he said, referring to the high-profile case of two Canadians detained in China for nearly three years from 2018-2021.

For the rest of FT’s report, Canada freezes activity at ‘China’s World Bank’ after infiltration claims, click here. For CNN’s update, ‘Nothing to hide’: AIIB will investigate claims of Chinese Communist Party control, click here. For Reuters’ update, Ex-AIIB comms chief says was advised to flee China after fiery resignation, click here.

Law and International Xi

Ex-Samsung VP arrested for stealing tech to build chip plant in China