Lutnick's China Ties Under Scrutiny After Trump Nomination for Commerce Secretary

Investment banker Howard Lutnick’s financial ties to China have drawn criticism following his nomination by President-elect Donald Trump to lead key US trade agencies, Alexandra Alper reported for Reuters.

BGC Group’s joint venture, China Credit BGC Money Broking Co. Ltd., was established in 2010 and is licensed to provide brokerage and data services in Beijing. I Photo: Cantor

Lutnick, nominated to serve as both US Trade Representative and Commerce Secretary, is the head of financial firms with extensive business dealings in China.

These include BGC Group, which operates a joint venture in Beijing with the Chinese state-owned China Credit Trust, and Cantor Fitzgerald, which has helped Chinese firms go public in the United States.

Critics, including lawmakers and ethics experts, argue that Lutnick’s financial ties could create conflicts of interest in decisions on tariffs and export restrictions related to China.

BGC Group’s joint venture, China Credit BGC Money Broking Co. Ltd., was established in 2010 and is licensed to provide brokerage and data services in Beijing. BGC holds a 33% stake in the venture, valued at $28 million, while China Credit Trust’s largest shareholder is the state-owned China People’s Insurance Co.

“Lutnick’s conflicts of interest in China appear to be substantial,” said Senator Ron Wyden, chair of the Senate Finance Committee.

“How can the American people expect someone with financial ties to the Chinese government to prioritize their interests?” Senator Tim Kaine added that Lutnick would likely face tough questioning about his financial connections to foreign adversaries during his confirmation hearings.