Wednesday, January 23, 2013

Does China Plan To Establish 'China Cities' And 'Special Economic Zones' All Over America?

Michael Snyder, Contributor
Activist Post

What in the world is China up to? Over the past several years, the Chinese government and large Chinese corporations (which are often at least partially owned by the government) have been systematically buying up businesses, homes, farmland, real estate, infrastructure and natural resources all over America. In some cases, China appears to be attempting to purchase entire communities in one fell swoop. So why is this happening?  Is this some form of "economic colonization" that is taking place?

Some have speculated that China may be intending to establish "special economic zones" inside the United States modeled after the very successful Chinese city of Shenzhen.  Back in the 1970s, Shenzhen was just a very small fishing village, but now it is a sprawling metropolis of over 14 million people.  Initially, these "special economic zones" were only established within China, but now the Chinese government has been buying huge tracts of land in foreign countries such as Nigeria and establishing special economic zones in those nations.  So could such a thing actually happen in America?

Well, according to Dr. Jerome Corsi, a plan being pushed by the Chinese Central Bank would set up "development zones" in the United States that would allow China to "establish Chinese-owned businesses and bring in its citizens to the U.S. to work."  Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to "equity".  As a result, "China would own U.S. businesses, U.S. infrastructure and U.S. high-value land, all with a U.S. government guarantee against loss."  Does all of this sound far-fetched?  Well, it isn't.  In fact, the economic colonization of America is already far more advanced than most Americans would dare to imagine.

So how in the world did we get to this point?  A few decades ago, the United States was the unchallenged economic powerhouse of the world and China was essentially a third world country. So what happened?

Well, we entered into a whole bunch of extremely unfavorable "free trade" agreements, and countries such as China began to aggressively use "free trade" as an economic weapon against us.

Over the past decade, we have lost tens of thousands of businesses and millions of jobs to China. When the final numbers for 2012 come out, our trade deficit with China for the year will be well over 300 billion dollars, and that will be the largest trade deficit that one country has had with another country in the history of the world.

Overall, the U.S. has run a trade deficit with China over the past decade that comes to more than 2.3 trillion dollars.  That 2.3 trillion dollars could have gone to U.S. businesses and U.S. workers, and in turn taxes would have been paid on all of that money.  But instead, all of that money went to China.

Rather than just sitting on all of that money, China has been lending much of it back to us - at interest.  We now owe China more than a trillion dollars, and our politicians are constantly pleading with China to lend more money to us so that we can finance our exploding debt.

Today, the U.S. government pays China approximately 100 million dollars a day in interest on the debt that we owe them.  Those that say that the U.S. debt "does not matter" are being incredibly foolish.

So thanks to our massive trade deficit and our exploding national debt, China is systematically getting wealthier and the United States is systematically getting poorer.

And now China is starting to use a lot of that wealth to aggressively expand their power and influence around the globe.

But isn't it more than a bit far-fetched to suggest that China may be planning to establish Chinese cities and special economic zones in America?

Not really.

Just look at what has already happened up in Canada.  It is well-known that the Chinese population of Vancouver, Canada has absolutely exploded in recent years.  In fact, the Vancouver suburb of Richmond is now approximately half Chinese.  The following is an excerpt from a BBC article...
Richmond is North America's most Asian city - 50% of residents here identify themselves as Chinese. But it's not just here that the Chinese community in British Columbia (BC) - some 407,000 strong - has left its mark. All across Vancouver, Chinese-Canadians have helped shape the local landscape.
A similar thing is happening in many communities along the west coast of the United States.  In fact, Chinese citizens purchased one out of every ten homes that were sold in the state of California in 2011.

But in other areas of the United States, the Chinese are approaching things much more systematically.

For example, as I have written about previously, a Chinese group identified as "Sino-Michigan Properties LLC" has purchased 200 acres of land near the town of Milan, Michigan.  Their stated goal is to build a "China City" that has artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

In other instances, large chunks of real estate in major U.S. cities that are down on their luck are being snapped up by Chinese investors.  Just check out what a Fortune article from a while back says has been happening over in Toledo, Ohio...
In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city's Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.
Toledo is being promoted to Chinese investors as a "5-star logistics region".  From Toledo it is very easy to get to Chicago, Detroit, Cleveland, Pittsburgh, Columbus and Indianapolis...
With a population of 287,000, Toledo is only the fourth largest city in Ohio, but it lies at the junction of two important highways -- I-75 and I-80/90. My vision is to make Toledo a true international city, Toledo's Mayor Mike Bell told the Toledo Blade.
But some of these deals appear to be about far more than just making "investments".  According to the Idaho Statesman, a Chinese company known as Sinomach (which is actually controlled by the Chinese government) was actually interested in developing a 50 square mile self-sustaining "technology zone" south of the Boise airport...
A Chinese national company is interested in developing a 10,000- to 30,000-acre technology zone for industry, retail centers and homes south of the Boise Airport.
Officials of the China National Machinery Industry Corp. have broached the idea — based on a concept popular in China today — to city and state leaders.
The article suggested that this "technology zone" would be modeled after similar projects that already exist in China, and that Chinese officials were conducting similar negotiations with other U.S. states as well...
Sinomach is not looking only at Idaho.
The company sent delegations to Ohio, Michigan and Pennsylvania this year to talk about setting up research and development bases and industrial parks. It has an interest in electric transmission projects and alternative energy as well.
The technology zone proposal follows a model of science, technology and industrial parks in China — often fully contained cities with all services included.
Thankfully the deal in Idaho appears to be stalled for now, but could we soon see China establish special economic zones in other communities all around America?

The Chinese certainly do seem to be laying the groundwork for something.  They have been voraciously gobbling up important infrastructure all over the country.  The following comes from a recent American Free Press article...
In addition to already owning vital ports in Long Beach, Calif. and Boston, Mass., the China Ocean Shipping Company is eyeing major ports on the East Coast and Gulf of Mexico. China also owns access to ports at the entry and exit points of the Panama Canal.
And due to fiscal woes plaguing many American cities and states, U.S. legislators have been actively seeking out Chinese investors. In one of the worst cases, Baton Rouge, La., Mayor Kip Holden offered the Chinese government ownership and operating rights to a new toll way system if the Chinese would provide the funding to build it.
Does it make sense for the Chinese to own some of our most important ports?

Isn't there a national security risk?

Sadly, there isn't much of anything that our politicians won't sell these days as long as someone is willing to flash a lot of cash.

The Chinese have also been busy buying up important real estate on the east coast as a recent Forbes article explained….
According to a recent report in the New York Times, investors from China are 'snapping up luxury apartments' and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.
But it is not only just land and infrastructure that the Chinese have been buying up.
They have also been purchasing rights to vital oil and natural gas deposits all over the United States.

There have been two Chinese companies that have been primarily involved in this effort.
The first is the China National Offshore Oil Corporation (CNOOC).  According to Wikipedia, CNOOC is 100 percent owned by the Chinese government…
CNOOC Group is a state-owned oil company, fully owned by the Government of the People’s Republic of China, and the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) performs the rights and obligations of shareholder on behalf of the government.
The second is Sinopec Corporation.  Sinopec Group is the largest shareholder (approx. 75% ownership) in Sinopec Corporation.  And as the Sinopec website tells us, Sinopec Group is fully owned by the Chinese government…
Sinopec Group, the largest shareholder of Sinopec Corp., is a super-large petroleum and petrochemical group incorporated by the State in 1998 based on the former China Petrochemical Corporation. Funded by the State, it is a State authorized investment arm and State-owned controlling company.
So whenever you see CNOOC or Sinopec, you can replace those names with the Chinese government.  The Chinese government essentially runs both of those companies.

And as you can see from the following list compiled by the Wall Street Journal, those two companies have been extremely aggressive in buying up rights to oil and natural gas all over the nation...
Colorado: Cnooc gained a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming in a $1.27 billion pact with Chesapeake Energy Corp.
Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion deal with Devon Energy.
Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.
Ohio: Sinopec acquired a one-third stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.
Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.
Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.
Wyoming: Cnooc has a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming after a $1.27 billion pact with Chesapeake Energy. Sinopec gained a one-third interest in Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.
Gulf of Mexico: Cnooc Ltd. separately acquired minority stakes in some of Statoil ASA’s leases as well as six of Nexen Inc.’s deep-water wells.
So why is the U.S. government allowing this? That is a very good question. For a nation that purports to be pursuing "energy independence", we sure do have a funny way of going about things.

Unfortunately, the sad truth is that China is absolutely mopping the floor with the United States on the global economic stage.  China is rising and America is in an advanced state of decline.  Global economic power has shifted dramatically and most Americans still don't understand what has happened.

The following are 44 more signs of how dominant the economy of China has become...

1. A Chinese firm recently made a $2.6 billion offer to buy movie theater chain AMC.

2. A different Chinese firm made a $1.8 billion offer to buy aircraft maker Hawker Beechcraft.

3. In December it was announced that a Chinese group would be purchasing AIG's plane leasing unit for $4.23 billion.

4. It was recently announced that the Federal Reserve will now allow Chinese banks to buy up American banks.

5. A $190 million bridge project up in Alaska was awarded to a Chinese firm.

6. A $400 million contract to renovate the Alexander Hamilton bridge in New York was awarded to a Chinese firm.

7. A $7.2 billion contract to construct a new bridge between San Francisco and Oakland was awarded to a Chinese firm.

8. The uniforms for the U.S. Olympic team were made in China.

9. 85 percent of all artificial Christmas trees are made in China.

10. The new World Trade Center tower is going to include glass that has been imported from China.

11. The new Martin Luther King memorial on the National Mall was made in China.

12. In 2001, American consumers spent 102 billion dollars on products made in China.  In 2011, American consumers spent 399 billion dollars on products made in China.

13. The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

14. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

15. The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

16. The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

17. The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.

18. Overall, the United States has lost a total of more than 56,000 manufacturing facilities since 2001.

19. According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

20. Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.

21. In 2010, China produced more than twice as many automobiles as the United States did.

22. Since the auto industry bailout, approximately 70 percent of all GM vehicles have been built outside the United States.

23. After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government.  The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.

24. Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

25. The United States has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.

26. China’s number one export to the U.S. is computer equipment.

27. The number one U.S. export to China is "scrap and trash".

28. The U.S. trade deficit with China is now more than 28 times larger than it was back in 1990.

29. Back in 1985, the U.S. trade deficit with China was just 6 million dollars for the entire year.  For the month of November 2012 alone, the U.S. trade deficit with China was 28.9 billion dollars.

30. China now consumes more energy than the United States does.

31. China is now the leading manufacturer of goods in the entire world.

32. China uses more cement than the rest of the world combined.

33. China is now the number one producer of wind and solar power on the entire globe.

34. Today, China produces nearly twice as much beer as the United States does.

35. Right now, China is producing more than three times as much coal as the United States does.

36. China now produces 11 times as much steel as the United States does.

37. China produces more than 90 percent of the global supply of rare earth elements.

38. China is now the number one supplier of components that are critical to the operation of U.S. defense systems.

39. A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain.

40. 15 years ago, China was 14th in the world in published scientific research articles.  But now, China is expected to pass the United States and become number one very shortly.

41. China now awards more doctoral degrees in engineering each year than the United States does
42. According to one study, the Chinese economy already has roughly the same amount of purchasing power as the U.S. economy does.

43. According to the IMF, China will pass the United States and will become the largest economy in the world in 2016.

44. Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.
Without the "globalization" of the world economy, none of this would have ever happened.  But instead of admitting our mistakes and fixing them, our politicians continue to press for even more "free trade" and even more integration with communist nations such as China.

In fact, according to Dr. Jerome Corsi, the U.S. government has already set up 257 "foreign trade zones" all over America.  These "foreign trade zones" are apparently given "special U.S. customs treatment" and are used to promote "free trade"…
Corsi noted that the U.S. government has created 257 foreign trade zones, or FTZs, throughout the United States, designed to extend special U.S. customs treatment to U.S. plants engaged in international-trade-related activities.
The FTZs tend to be located near airports, with easy access into the continental NAFTA and WTO multi-modal transportation systems being created to move free-trade goods cheaply, quickly and efficiently throughout the continent of North America.
There is nothing in the U.S. government’s description of FTZs that would prevent a foreign government, like China, from operating a shell U.S. company that is in reality owned and financed by the Chinese government and operated through a Chinese government-owned corporation, Corsi wrote.
Sadly, we are probably going to see a whole lot more of this in the years ahead.

According to Corsi, a professor of economics at Tsighua University in Beijing named Yu Qiao has suggested the following plan as a way to transform the debt that the United States owes China into something more "tangible"...
  1. China would negotiate with the U.S. government to create a “crisis relief facility,” or CRF. The CRF “would be used alongside U.S. federal efforts to stabilize the banking system and to invest in capital-intensive infrastructure projects such as high-speed railroad from Boston to Washington, D.C.
  2. China would pool a portion of its holdings of Treasury bonds under the CRF umbrella to convert sovereign debt into equity. Any CRF funds that were designated for investment in U.S. corporations would still be owned and managed by U.S. equity holders, with the Asians holding minority equity shares “that would, like preferred stock, be convertible.”
  3. The U.S. government would act as a guarantor, “providing a sovereign guarantee scheme to assure the investment principal of the CRF against possible default of targeted companies or projects”.
  4. The Federal Reserve would set up a special account to supply the liquidity the CRF would require to swap sovereign debt into industrial investment in the United States.
Apparently the Bank of China really likes this plan and would like to see something like this implemented.

In the years ahead, perhaps many of you will end up working in a "special economic zone" for a Chinese company on a project that is being financially guaranteed by the U.S. government.

If that sounds like a form of slavery to you, the truth is that you are probably not too far off the mark.

The borrower is the servant of the lender, and we should have never allowed ourselves to get into so much debt.

Now we will pay the price.

To get an idea of how much the world has changed in recent years, just check out this incredible photo which contrasts the decline of Detroit over the years with the amazing rise of Shanghai, China.

Things did not have to turn out this way.  Unfortunately, we made decades of incredibly foolish decisions and we wrecked the greatest economic machine that the world has ever seen.

Now the future for America looks really bleak.

Or could it be that I am being too pessimistic?  Please feel free to post a comment with your thoughts below...

This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.


This article may be re-posted in full with attribution.


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Anonymous said...

Actually, China is surrounding and infiltrating the US with the collusion of the government. The Chinese citizens moving into these cities, towns, and jobs are not just innocent civilians. I said it years ago, China is our greatest enemy. Lenin said it in the 1920's, "...the US will fall to Communism like an overripe grape, without a shot being fired..." I paraphrase but the meaning is the same.


Anonymous said...

Look man! Stop bothering me with this trivial crap. Dontcha know the gubermint is coming for our guns, they are coming to take away our guns!!

I need to buy more guns, more amo, and then once America is saved there will be no Chinese cities.
Get it?

Anonymous said...

This anti-Chinese hatefest propaganda is disgusting. Cnooc, peto-china, Sinopec etc are not 100% Chinese government owned. I am American and i bought some shares in all of them. They are publicly traded companies. Anyone can buy shares in them. Total garbage article with little research, appealing to racists. Chine is growing because its people save a lot, some 40% of their income. Instead of blaming them for their success, we can increase our efforts and discipline. Keep it factual.

J said...

Chinese, Japanese, American knees.

Anonymous said...

The US Government owes China $1.17 Trillion??? If that's so, it owes We the People $20 Trillion.

We the People have been robbed since the privately owned "Federal Reserve" Rothschild Bank was established a century ago. TWENTY TRILLION DOLLARS, folks. That's what our so-called government owes us. And, do you believe for one second that we'll ever be repaid??

Anonymous said...

Hey stock holder guy,
Your funding the take over. Stock holders are investors. You have invested your money in a non American owned company, therefore you are in essensance supporting the take over. I had stock in these companies as well, until I started using my brain.

Anonymous said...

True- Shareholder's are the FUEL the RUN the corporations!

Corporations are the STRUCTURES that destroy our world!

Anonymous said...

Same thing is begining to happen in the UK where China is paying for the infrastructure projects around Liverpool where it will probably become a chinese special economic zone

Anonymous said...

For decades American companies set up shop in third world countries like El Salvador, Guatemala, Sri Lanka, Indonesia and screwed the people.

The governments of those nations were bribed, bombed or intimidated into supporting the evil USA incursions into their countries.
Now China does the same thing and people are offended. Chickens coming home to roost.
USA, third world backwater, getting worse every day. Can't say you didn't have it coming.

Anonymous said...

The dunderhead George W. Bush started our downfall with his unpaid wars. You don't hear much about him any more. GOP that was some smart conservative you had there - - - disgusting!

David McElroy said...

We are literally sold out by our government and corporate traitors. China is not only investing, it is pre-positioning resources and establishing colonies from which to base spies and troops to overtake us at some point. It is a Trojan Horse!

Anonymous said...

I'm strongly suspecting that this may explain why China's government wants Obama and his gang of Chicago thugs in Washington to strip all law abiding and Patriotic Americans of their Second Amendment rights.

Anonymous said...

Dont forget that our gov put up all our national forests and parks as collateral decades ago for secret loans-so China already owns our country, at least the most beautiful areas...

rogertrans said...

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Co-opted Confederate said...

The first person to and all subsequent persons that allowed the U.S> Federal Government or any of its agencies to borrow one red cent or one thine dime , let alone billions from China or to allow Us companies to do business in China should be Impaled,beheaded,drawn and quartered, and hung out to dry in peices in every Chinese City toewn village and hamlet. The current US government should pay off what ever it owes to china, by collecting what is owed it from WW I & WW II onward from every country we have ever "given" any type of aid to. How stupid to rob(borrow from China) Peter, to pay Paul(every other piss ant country on the planet); then get caught(told to pay up or else) by Peter who is meaner, biger, stronger, crazier than Paul.

Anonymous said...

Bullshit! China can do this and that, but can't stop USA from supplying weapons to Taiwan! BULLSHIT, BULLSHIT, BULLSHIT!

Anonymous said...

Please tell us, all you people with fancy degrees from fancy institutions; if the article is true, how can USA continue to anger China by selling weapons to Taiwan? Please, forget all your nonsense of China's superiority. Just explain how "bankrupted" USA can continuously, year by year, humiliate China by selling arms to Taiwan. Sorry, I didn't graduate from college, so I am ignorant. But I am sure you fancy people have a good explanation for this. Please enlighten us.

Anonymous said...

There is big difference between selling office towers,hotels, etc., to foreign investors such as China, and selling our National Parks; and now, selling land in our country whose entire development, industry, and infrastucture, will be owned and operated under China law. I live in Reno, Nv, and shortly after reading about this the other night, I recieved the following e-mail from a family member, who had gotten it from a friend:
"The enormous wealth generated by this new prosperity has created much greater incentive for Chinese Communist power holders to hang on to power, and more resources for them to co-opt other social groups and repress the opposition."
Pof Feng Chongji, UTS

It's true, MyNews4 and Northern Nevada Business Weekly confirm it: The Biggest Little City within the next 15 years will morph into The Biggest Little Chinese City.

The Scariest FACT: There are several areas throughout the US where sectioned off parcels of real estate that will be the size of small to large cities complete with their own laws just like Native American Reservations are in the works and on the books. What this means is if you or I as American Citizens accidentally enter one their police forces operating under their laws can arrest you and you may never be seen again.

Nice, huh? Just what our Veterans who fought against Communism really need not to mention families and friends who lost those overseas in the fight.

Here are some links to review the complete articles and links with a few quotes from each and a telling indicator of what we may face in the form of an answer with a short reply to the question 'How Communist is China' dated as being posted in 2010
Chinese development company readies plans in northern Nevada
..."The properties, which had been owned by Wells Fargo Bank, extend from Wingfield Springs to Washoe Valley to Dayton.

The acquisition, which closed during the second quarter, marks the first significant foray into U.S. markets by Xinyuan, a $1.4 billion (assets) company whose shares trade on the New York Stock Exchange.

Zhang, a 34-year-old graduate of New York University, had been traveling the United States from San Diego to Washington, D.C., to Maine in search of residential development opportunities for Xinyuan."

..."Leaving his downtown hotel room at 2 in the morning, Zhang saw vibrant nightlife, young people on the streets and busy restaurants -- a big little city.

In the subsequent couple of days, he also was struck by the openness of northern Nevada residents and the region's clear skies and clean water."

...."Zhang believes that residential development in northern Nevada potentially could draw big investments -- maybe $100 million at a time -- from Chinese investors.

And he expects to be in the forefront of that deal-making. "I want to be the first Chinese mayor of Reno," he laughs"
China-based real estate company buys numerous lots, land in northern Nevada for $7.4 million
..."The properties, which had been owned by Wells Fargo Bank, extend from Wingfield Springs to Washoe Valley to Gardnerville, Berrego says.

The deal was closed in May 2012 and was the first U.S. market property purchase the company has ever made."
......"How communist is China?


Anonymous said...

Since recieving this e-mail, some other things are making sense, such as Walmart caught selling things made in China, labled as made in USA, and their recent announcement to sell made in the USA products. They'll be made here, alright, by the Chinese; at least until they can make enough people "Bow to the Collective".
@Co-opted Confederate....I believe that would be the Federal Reserve.

Anonymous said...

Wow, American politicians and corporations are selling out to China like crazy, but they won't stop selling arms to Taiwan. Nothing makes China angrier than arming Taiwan because China claims Taiwan is theirs. This doesn't make sense! All the claims of China's powers are hollow. American politicians and corporations are aware of it. China is aware of it too, I'll bet. If China was really that powerful, Taiwan would have been invaded yesterday.

ghana serapis said...

Shut up about Taiwan. Nothing says made in Taiwan anymore. So 70's, dude. It's how they got technology to China, through Taiwan. Hush blind mice.

Anonymous said...

A very informative article. I just checked the bridge rebuilt between San Francisco and Oakland being outsourced to a Chinese company. I got verification about this from a NY Times article.

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