China-owned company expanded near Fla. military base under DeSantis governorship

Republican presidential candidate Ron DeSantis, who has touted his tough stance toward China, stayed quiet when a subsidiary of a US-sanctioned Chinese company expanded fewer than 15 miles away from a Florida military base during his time as the state’s governor.

On the campaign trail, the 45-year-old DeSantis has said he would “reorient” US foreign policy to prioritize the Indo-Pacific region and signed legislation preventing Chinese Communist Party affiliates from purchasing land near military bases.

Cirrus Aircraft — a subsidiary of Aviation Industry Corp. (AVIC) of China — opened two new locations in central Florida in 2022.

One of those was at the Orlando Executive Airport, 12.7 miles away from the Naval Air Warfare Center Training Systems Division.

AVIC makes fighter jets, helicopters and drones for the Chinese military.

In 2020, the US deemed AVIC to be a possible national security threat and imposed sanctions on the company as part of an initiative to stop the growth of firms tied to Beijing’s People’s Liberation Army.

4

DeSantis said nothing publicly about the expansion of Cirrus in his state at the time — and in February of 2023, he delivered remarks in front of a Cirrus SR 22 aircraft while criticizing President Biden’s response to the Chinese spy balloon fiasco.

The state of Florida has not provided any taxpayer subsidies or other incentives to Cirrus or its parent company. 

Cirrus, although not being subject to sanctions itself, could pose a national security risk to the US due to its connection to AVIC, defense experts told The Post.

There is no sign the US government will crack down on Cirrus anytime soon, and the federal government has not accused the company of any wrongdoing.

“It is unnecessarily risky to allow subsidiary companies of Chinese firms that have been listed as sanctioned to operate,” said retired Rear Adm. Mark Montgomery, senior director of the Foundation for Defense of Democracies’ Center on Cyber and Technology Innovation. “The parent company has already failed to meet a standard of transparency that got them on that [sanctions] list.”

Cirrus’ subsidiary status poses “questions” about how close the company is with AVIC, said Kari Bingen, director of the Aerospace Security Project at the Center for Strategic and International Studies.

“Bottom line, it is concerning,” Bingen said. “Even with a subsidiary I would want to understand: Who is on the board of directors? To what degree does the parent company have control, provide direction, receive information from the subsidiary?”

4

A June Cirrus prospectus filed with the Hong Kong stock exchange showed the company’s employees do have ties to other AVIC subsidiaries sanctioned by the US.

Cirrus Vice-Chairman Hui Wang is a director of AVIC Heavy Machinery Co. — a company sanctioned by the US Treasury Department and listed by the Pentagon as a Chinese military company, Bloomberg reported.

An additional Cirrus director is on the board of two US-sanctioned AVIC subsidiaries, according to the outlet.

Cirrus has maintained its relationship with AVIC poses no threat to US national security interests.

“US laws strictly prohibit sharing any information that would pose a risk to US national security, and Cirrus Aircraft complies with all US laws and regulations,” spokesperson Nadia Haidar said in a statement.

4

China has been at the forefront of the 2024 campaign, with DeSantis and former South Carolina Gov. Nikki Haley both accusing each other of being weak towards Beijing as their polling numbers show them neck-and-neck in the primary.

“Facts matter,” DeSantis press secretary Bryan Griffin told The Post. “Ron DeSantis uniquely recognizes the threat posed by the Chinese Communist Party and spent his governorship working to end pre-existing state ties with China and build up protections against future Chinese incursions.”

“Nikki Haley spent her governorship courting Chinese businesses to South Carolina, calling them a friend, and failing to pursue corrective efforts to safeguard her state from the threat of the CCP. As president, Ron DeSantis will ensure America wins and China loses. Nikki Haley’s past actions show that she would continue to roll out the red carpet for the CCP, which is disqualifying for anyone running for President,” Griffin added.

4

As governor, DeSantis has signed bills barring sensitive data from being stored on CCP-owned or affiliated servers, stopping state colleges and universities from being subject to Chinese influence and blocking access to CCP-affiliated apps like TikTok on government devices.

He also signed an executive order prohibiting government entities from procuring technology from CCP-affiliated companies.

Never Back Down, the super PAC backing DeSantis, recently launched an ad focusing on South Carolina donating 197 acres to a Chinese fiberglass company during Haley’s tenure as governor.

Haley has argued the project helped the economic development of her home state.

Chinese investments in South Carolina more than doubled while Haley was governor, according to the Washington Post, and companies with affiliations to the CCP received 1,500 acres of land.

She also lobbied the Commerce Department to reconsider its high tariff on the China-affiliated company Giti Tires.

Meanwhile, Haley has accused DeSantis of attempting to hide his previous efforts to recruit Chinese companies to Florida by scrubbing a government website of references to such ties.