Arkansas Attorney General Tim Griffin announced Tuesday that his office had found no ownership ties to China or the Chinese Communist Party on a property in Fort Smith recently acquired by Olivet International Inc.a major Walmart supplier.
“In my investigation of the ownership of 4811 S Zero Street LLC in Fort Smith, I have determined that there is no violation of Act 636 of 2023,” Griffin said in a statement released Tuesday afternoon. “4811 S Zero Street LLC is not owned, controlled, or affiliated with a ‘prohibited foreign party controlled entity.'”
More details have emerged about the state’s probe into ownership of a 378,000-square-foot manufacturing facility since the announcement of an investigation into 4811 S Zero Street LLC, named after the property’s address in Fort Smith. State officials said they launched the investigation after raising concerns about possible ties to China and the Communist Party of China.
The investigation was announced in late July over a possible violation of Act 636, an Arkansas state law that prohibits the ownership of certain types of property by companies with ties to China, the Chinese Communist Party or other countries (such as Iran and North Korea) considered a threat to the national security of the United States.
After reviewing the company documents and property registers Arkansas Times reported that the property, registered with the Arkansas Secretary of State at 4811 S Zero St LLC, is owned by Olivet International, a multinational company that is a major Walmart supplier and has a facility in Bentonville and two existing manufacturing facilities in northwest Arkansas.
The Arkansas Times has since confirmed several versions of a letter dated July 23 Gov. Sarah Huckabee Sanders And Agriculture Minister Wes Ward to Attorney General Tim Griffin, requesting that his office investigate the LLC. Email records also show that state authorities knew that Olivet owned the building.
The emails, obtained under the Freedom of Information Act, show that state officials reviewed at least three drafts of the letter and that Alexa Henninga spokesman for Governor Sarah Sanders, was the one who suggested adding the word “communist.”
One version of the letter instructs Griffin’s office to examine the LLC for “ownership connections to Republic of China and the Communist Party of China.”
It’s understandably confusing, but the Republic of China is the official name of Taiwan, a U.S. ally. The Chinese Communist Party (CCP) does not officially recognize Taiwan’s existence as an independent state, but considers the island to be part of the territory of the People’s Republic of China.
There is little to no cooperation between the Republic of China and the CCP on business or diplomatic matters. In recent months, the government of mainland China, the CCP, has increasingly talked about a possible invasion of Taiwan, which could trigger an American military intervention to defend the island.
Arkansas officials expressed concern that the proximity of the Fort Smith site posed a threat to the nearby Ebbing National Guard Basea military site where US troops could reportedly be trained for deployment in Asia should tensions between mainland China and Taiwan increase.
A spokesman for the Attorney General’s Office confirmed the authenticity of the letter referring to the Republic of China/Taiwan. This letter was published on July 24 at 10:34 a.m. as a “scoop” on X by Washington Reportera Washington, DC-based news agency “founded by Republican political consultants and former congressional staffers Garrett Ventry And Brian Colas”, says Axios.
Arkansas Times could not verify whether the letter referring to the Republic of China/Taiwan was the first of several versions written.
According to a source close to Olivet International, although the company has no ties to the Chinese Communist Party, there are executives of Taiwanese descent there. Arkansas Times could not independently verify these claims. A source close to Olivet pointed out that Arkansas Times to the Attorney General’s press release of Tuesday in response to further inquiries.
California state corporate records show that Olivet was incorporated there in 1984. Executives listed on the 1984 California certificate of incorporation include David Yu and Moon Wei Yu. Arkansas Times could not confirm their nationality or citizenship.
Internal emails sent by the Arkansas Times An FOI request to the Arkansas Department of Agriculture revealed that the agency was aware that 4811 S Zero Street LLC was owned by Olivet International before the Attorney General’s office publicly announced on July 24 that it would investigate suspected ties to China.
These emails also reveal the extent to which the governor’s communications director wanted to ensure that communications about the investigation emphasized ties to Chinese communism.
In a draft of the July 23 letter to Griffin’s office requesting an investigation, “reasonable suspicion of ownership ties to the Republic of China and the Chinese Communist Party” was changed to “reasonable suspicion of ownership ties to China.” A third version, eventually circulated on social media, is again changed to read “reasonable suspicion of ownership ties to China and the Chinese Communist Party.”
In an email sent by the governor’s communications director to the state’s agriculture secretary at 1:52 p.m. on Tuesday, July 23, Henning suggested changing the wording. “Instead of China, can we use ‘Communist China’ or ‘Chinese Communist Party,'” she wrote.
Ward replied about a minute later: “100%!”
Additional emails exchanged between Ward, Henning and other employees before Griffin’s office announced an investigation contain background information about the LLC in question, including suspicions about an individual named Pei-Te Lin, who was listed in the company’s business records with the Arkansas Secretary of State.
“Pei-Te Lin appears to reside in California and has significant ties to other companies, including Olivet International, Inc. Pei-Te Lin is listed as a director and secretary of Olivet International,” the emails said.
Arkansas Times Inquiries to Olivet International regarding Pei-Te Lin’s nationality and citizenship were not answered.
The emails continue: “Olivet International purchased the former Superior Industries facility in Fayetteville in 2021. That same year, they also purchased a 23-acre industrial site in Rogers. They are a Walmart supplier with factories in China. Olivet makes items ranging from luggage to Dockers.”
(According to Olivet’s website, the company has a sales office in mainland China near Shanghai. It also operates in Taiwan and the Philippines.)
Walmart has not responded to Arkansas Times Inquiries about the investigation into Olivet’s Fort Smith property.
“I thank the Secretary of Agriculture for bringing this issue to my attention and the owners of 4811 S Zero Street LLC for their cooperation in the investigation,” Griffin said in his announcement Tuesday. “I also commend the diligence of the attorneys and agents in my office who handled this case.”
