Investigation Report on US-sanctioned Sinochem Group, subsidiary of ChemChina and the World’s Largest Agrochemical Company
Author: DCSanNong, Mr. 3Rights, DC Coach
Translator: DC Coach
On June 18, 2020, two Chinese state-owned enterprises, China National Chemical Corporation, commonly known as ChemChina, and Sinochem Group restructured assets and formed Syngenta Group, wholly owned by Chemchina. Syngenta owns 100% of Syngenta Switzerland, 74% of ADAMA Agricultural Solution of Israel, and other Sinochem Group companies. The new company is the world’s largest pesticide, seeds and fertilizer company. Before the restructuring, Syngenta had sales of $23 billion in 2019, surpassing Bayer (including the acquired Monsanto), which had sales of $22.1 billion, with a global ranking of No. 1 in pesticides and a global market share of 25%, and a global ranking of No. 3 in seeds industry. Switzerland’s Syngenta is known worldwide for its genetically modified seeds.
Registered in Hong Kong, the new Syngenta Group’s main bases and operations are overseas, with Syngenta Switzerland headquartered in Basel, Switzerland, Syngenta Seeds headquartered in Chicago, and ADAMA headquartered in Tel Aviv Israel. See picture below:
Syngenta Switzerland: Headquartered in Basel, Switzerland, Syngenta Switzerland was formed in 2000 through merging Novartis and agrochemicals company Jellycom and is the world’s largest pesticide company and the third-largest seed company. Syngenta’s leading technologies span multiple sectors, including genomics, bioinformatics, crop transformation, synthetic chemistry, molecular toxicology, environmental science, high-throughput screening, marker-assisted breeding, and advanced formulation processing technologies, and was wholly acquired by ChemChina for $43 billion on June 7, 2017, making it the biggest oversea purchase by China in single transaction amount.
ADAMA Ltd : ADAMA Ltd. has a long history of more than 70 years, starting with two Israeli crop protection companies, and was wholly acquired by ChemChina in 2011. It mainly deals in pesticides.
On August 28, 2020, U.S. Department of Defense added ChemChina and Sinochem to List of Companies Owned or Controlled by the Chinese Military. Under the National Defense Authorization Act, the President of the United States has the authority to invoke the International Emergency Economic Powers Act (IEEPA) against these companies for their operations in the U.S., including the imposition of sanctions. On November 12, 2020, President Trump issued an executive order prohibiting U.S. investors from investing in companies owned or controlled by the Chinese military, including ChemChina and Sinochem.
Significant matters requiring U.S. and international attention.Syngenta Group is now fully controlled by the Chinese CCP government, and is the world’s largest agrochemical company with a global ranking of No.1 and a global ranking of No. 3 in seeds industry with its operations headquarters located in Chicago, Switzerland, and Israel. It owns some of the world’s most advanced technology, of which is the world’s leading genetic modification technology. If the Chinese Communist Party’s practice of dumping one country to compete at low cost, it may monopolize the global market of pesticides and seeds. At that time, if the Chinese Communist Party releases poison and promotes the Chinese Communist Party’s genetically modified seeds globally, it will wreak havoc on the world.
Both ChemChina and Sinochem are facing sanctions from the U.S., so is Syngenta Group and its main companies, Syngenta Switzerland and ADAMA, Ltd that they fully own. To evade U.S. sanctions, the Chinese government is planning to let certain overseas companies which are ostensibly unrelated to Chinese government but are controlled by its proxy hold Syngenta Group, so these companies may continue to operate under the control of the Chinese central government. Sources say the nominal controlling stake deal is expected to be about $9-20 billion, taking place in Hong Kong. The deal has been initiated in November 2020 and could be concluded soon. It is hoped that the U.S. and international community will pay attention to the deal.
Such operation reflects a general strategy that the CCP government is using to evade the U.S. sanctions to the Chinese state-owned companies. Other Chinese government owned enterprises such as China Communications Construction Company Limited (CCCC) and China National Offshore Oil Corporation (CNOOC) also have such plans.
The above matters will hopefully attract widespread attention from the United States and the international community.