Communist China has been amassing growing power and influence over U.S. industries for years, including sports, Hollywood and major corporations. Now it appears next on China's list is direct control of U.S. media companies. A Chinese-backed company called Magnum Opus is bidding to buy Forbes, prompting new criticism from a group of Republican senators. In a letter to the Biden administration, the senators--including Ted Cruz of Texas--warn that Magnum Opus is controlled by the Chinese Communist Party and could use Forbes to push propaganda and endanger U.S. national security.
The senators are calling on the Biden administration to investigate the proposed Forbes purchase to see if it violates foreign investment laws in the U.S. "The Federal Communications Commission has a prohibition against foreign entities buying broadcast properties, but that prohibition does not apply to print or digital news outlets (like Forbes)," says Jeff McCall, professor of media studies at DePauw University. "And I think our national government should consider whether maybe it should."
McCall tells KTRH that while Forbes does not have the reach or influence of outlets like the Wall Street Journal or USA Today, it is a major player in the U.S. media landscape. "The Forbes name still has a lot of credibility, and that's surely what this Chinese-controlled firm is wanting," he says.
The initial announcement of Magnum Opus seeking to buy Forbes came out almost a year ago, but it has evaded scrutiny until now, while most of the hostility in D.C. has been directed toward Russia. "There has been a lot of concern in the last several years about Russian influence, and it seems the Chinese government has been off that radar," says McCall. "And I think that is misguided."
The effort to buy Forbes comes as China continues to escalate its influence operations in America. Axios reports China's spending on foreign agents in America rose by 500 percent between 2016 and 2020.
McCall agrees this deal deserves much more attention from the federal government. "We don't know what the potential harm might be, and there could be national security implications," he says. "And if there are, you'd rather head those off than wait until years down the road and find out we've got Chinese operatives making news decisions for organizations in the United States."