Democratic Sen. Bob Casey (Pa.) held a stake in a Chinese state oil company that the Pennsylvania treasury department blacklisted over its ties to Iran, according to financial disclosures.
In 2014, Casey invested as much as $50,000 in Janus Flexible Bond A, a mutual fund that in turn held $10.8 million in the China National Offshore Oil Company (CNOOC), China’s largest offshore oil and natural gas company. The Pennsylvania treasury department blacklisted CNOOC in 2010 and 2014 for selling oil to Iran, according to agency records.
While Casey’s investment in CNOOC was minimal, it could neutralize the Democrat’s line of attack against his Republican opponent Dave McCormick over a similarly small Chinese investment. Casey has tried to link McCormick, the former co-CEO of Bridgewater Associates, to Humanwell Pharmaceutical, a Chinese drug company that produces fentanyl, a painkiller that has caused a spike in drug overdoses in recent years.
Casey’s campaign, citing a report from the Democrat-funded fake news network Courier Newsroom, claimed Bridgewater’s $1.7 million investment in Humanwell shows McCormick has helped fund the illicit fentanyl trade from China to the United States. There is no evidence that Humanwell produces fentanyl for illicit purposes, and the company says it does not export its fentanyl-related products to the United States.
McCormick has hit back at Casey, saying the Democrat is "lying about my record, and a hypocrite on his own record." Casey is invested in Humanwell through the Massachusetts College Portfolio, Fox News reported.
The fight over Chinese investments highlights the high stakes of a race that could determine which party controls the Senate. McCormick has accused Casey, a three-term incumbent, of voting against measures to secure the border, enabling the flow of fentanyl from Mexico.
"Casey has had 18 years to secure our border and prevent fentanyl from killing 100,000 Americans last year alone—under his weakness, this crisis has worsened beyond imagination," McCormick said.
The Republican has hammered Casey over his deciding vote for the Iran nuclear deal in September 2015. Casey said the deal would "enhance security" for Israel and the United States.
McCormick assailed Casey over the vote after Iran launched an attack on Israel in April. "Bob Casey was the deciding vote for the Iran Deal in 2015—unlocking billions for Tehran to use to foment terrorism around the world," McCormick said. "The result? Over the weekend, Iran launched over 300 missiles and drones against Israel."
Federal and state agencies have had concerns about CNOOC’s ties to Iran for years. The Pennsylvania treasury department added CNOOC’s to its list of "scrutinized companies" in 2010 over its dealings with Iran. The agency removed CNOOC from the list the following year, but listed it again in August 2014. The California State Teachers Retirement System placed CNOOC "under review" in 2009, and the Texas state pension board added CNOOC to its list of "scrutinized companies" in 2013.
CNOOC continues to sell oil to America’s adversaries. It renewed a deal to sell oil to Iran last year and has resisted pressure to end oil sales to Russia after its invasion of Ukraine. The Ukrainian government labeled CNOOC an "International Sponsor of War" over its alliance with Moscow.
The Casey campaign did not respond to a request for comment.