1996 United States Campaign Finance Controversy - Background

Background

According to the United States Senate report Investigation of Illegal or Improper Activities in Connection with 1996 Federal Election Campaigns, prior to 1995 China's approach to promoting its interests in the United States was focused almost exclusively on diplomacy, including summits and meetings with high-level White House officials. In these meetings, Chinese officials often negotiated with the United States government by using the appeal of their huge commercial market.

Around 1995, according to the Senate report, Chinese officials developed a new approach to promote their interests with the United States government and to improve China's image with the American people. The proposals, dubbed the "China Plan", began when President Clinton succumbed to Congressional pressure to grant Taiwan President Lee Teng-Hui a visa to attend a class reunion at Cornell University. United States Secretary of State Warren Christopher had previously assured his Chinese counterpart Qian Qichen that granting a visa would be "inconsistent with unofficial relationship " and the Clinton Administration's acquiescence to the Congressional resolutions led China to conclude that the influence of Congress over foreign policy was more significant than it had previously determined. When formulating the so-called plan, Chinese officials acknowledged that, compared to other countries (such as Taiwan or Israel), it had little knowledge of, or influence over, policy decisions made in Congress. The plan, according the Senate report, instructed Chinese officials in the U.S. to improve their knowledge about members of Congress and increase contacts with its members, the public, and the media. The plan also suggested ways to lobby United States officials.

Over the years, China has repeatedly denied these lobbying efforts involved financial contributions of any kind:

ome people and media in the United States speculated... about so-called participation by Chinese individuals in political donations during the U.S. elections. It is sheer fabrication and is intended to slander China. has never, nor will we ever, use money to influence American politics – China's Foreign Ministry spokesman, May 1998.