An upscale Indonesian real estate project with ties to the Trump Organization has received a sizable loan from a state-owned construction firm. The deal, seen as part of Beijing’s “Belt and Road” initiative, has raised eyebrows in the U.S.
A Chinese company is extending a $500 million loan to a state-owned construction company to build an Indonesian development project that will feature a Trump-branded golf course and hotels.
A subsidiary of Chinese state-owned construction firm Metallurgical Corporation of China (MCC) signed a deal last week with the Indonesian firm MNC Land to build a splashy “integrated lifestyle resort.”
The deal is part of China’s “Belt and Road” infrastructure initiative, a modern vision of the Silk Road meant to extend the country’s financial and cultural influence beyond its borders.
The project will include a theme park located next to several Trump-branded hotels, a golf course and a residence. While the $500 million loan will not be directly allocated to any of the Trump-branded assets, the Chinese firm’s contribution amounts to half the project’s total operating budget.
A subsidiary of Chinese state-owned construction firm signed a deal last week with the Indonesian firm MNC Land to build a splashy “integrated lifestyle resort.”
The theme park, the Trump-branded hotel, and the 18-hole golf course are being developed by the billionaire Hary Tanoesoedibjo, head of the MNC Group. They’re being packaged together as part of a $500 million luxury complex called Lido City.
Outlets have noted that negotiations for the Lido City deal began before Donald Trump took office, but the deal has still raised eyebrows as U.S. and Chinese officials continue to negotiate on trade – an ongoing process that so far has yielded few results.
Trump has repeatedly threatened to slap tariffs on Chinese-made goods. Senior Chinese official Liu He is arriving in Washington this week for talks meant to mitigate the mounting tension, the New York Times reported.
The countries have also argued over Chinese smartphone and telecom equipment manufacturer ZTE, which recently announced it would be suspending its main operations soon after the U.S. Commerce Department barred American companies from selling it components it needed for making its smartphones.
The product embargo was meant to punish the company for violating a deal related to circumventing sanctions in Iran and north Korea. In an about-face, Trump said this week he wants to find a way to stabilize ZTE and save Chinese jobs.