Screwed by a lying Democrat

One GM Sale to China Just Destroyed America’s Biggest Defense Advantage

In 1995, when Bill Clinton was President, General Motors sold its rare earth magnet subsidiary Magnequench to the Sextant Group, an investment firm led by Archibald Cox Jr..

The group, however, was a front for two Chinese state-owned companies: the China National Non-Ferrous Metals Import and Export Corporation and San Huan New Material.

• The deal: The sale to the Sextant Group included the Chinese firms, giving them a majority stake in Magnequench.
• The front: Cox, as the CEO of Sextant, presented the acquisition as being by an American investment group.
• The owners: The Chinese firms had close ties to the Chinese government, with their heads being in-laws of former Chinese leader Deng Xiaoping.
• Consequences: Following the sale, Magnequench began shutting down its U.S. plants and moving production to China, a move that raised national security concerns.

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