Foreign Influence, EB-5 Visas, and Political Contributions: An Investigative Overview

In recent decades, the intersection of U.S. immigration policy and political fundraising has drawn increasing scrutiny. Investigative journalist Peter Schweizer, in his book “The Invisible Coup: How American Elites and Foreign Powers Use Immigration as a Weapon,” argues that long-standing visa programs, particularly the Employment-Based Fifth Preference (EB-5) visa, may have facilitated the flow of foreign money into Democratic political campaigns during the 1990s. According to Schweizer, this convergence of immigration policy, investment incentives, and campaign finance violations raises questions about foreign influence in American politics and national security implications that persist today.

The EB-5 Visa Program: Purpose and Mechanics

The EB-5 visa program, created by Congress in 1990, was designed to encourage foreign investment in the United States while stimulating job creation. Under its provisions, foreign nationals who invested at least $1.05 million, or $800,000 in designated employment areas, and created a minimum of 10 American jobs could qualify for lawful permanent residency. The program was widely seen as a mutually beneficial initiative: the U.S. gained capital and jobs, while investors and their families gained a path to citizenship.

However, Schweizer’s research suggests that beyond its economic impact, the EB-5 program provided a pathway for foreign actors to participate indirectly in U.S. political life—a realm where foreign nationals are otherwise prohibited from making campaign contributions under federal law. “The program gave foreign investors — particularly from China — access to the U.S. political system,” Schweizer notes, highlighting how investors who became permanent residents could legally contribute to political campaigns.

Political Contributions and Early Controversies

Key figures associated with the early promotion of EB-5 included Maria Hsia and John Huang, individuals later tied to major campaign finance controversies in the mid-1990s. A Senate investigation revealed that Hsia acted as an agent of the Chinese government while concealing her affiliations and organizing political donations. Huang eventually pleaded guilty to conspiracy charges related to campaign finance violations in 1999.

Schweizer’s book also references James Riady, whose family’s financial interests intersected with political contributions during the same period. Following the revelations, the Democratic Party returned over $1 million in contributions deemed improper. These cases collectively demonstrate how political donations tied to foreign nationals, when combined with programs like EB-5, could create channels for influence that challenge the integrity of American campaign finance laws.

EB-5, Chinese Investors, and Political Access

The EB-5 program reportedly attracted many investors from China. Some EB-5 firms promoted the program by advertising connections to political figures and implying access to high-level U.S. officials. Schweizer emphasizes the potential national security implications, given that EB-5 investors sometimes gained positions in projects involving critical U.S. infrastructure.

One notable case cited in The Invisible Coup involves Danhong “Jean” Chen, a Chinese citizen and EB-5 facilitator. According to Schweizer, Chen directed hundreds of thousands of dollars to Democratic campaigns and later faced indictment on visa fraud and identity theft charges. Reports indicate that she fled the country before facing arrest. Such incidents highlight concerns that EB-5 investors could leverage immigration pathways to indirectly influence political outcomes, raising questions about oversight and security vetting.

Discrepancies with Chinese Capital Transfer Policies

Schweizer’s research notes an apparent contradiction between Chinese government policy and EB-5 operations. While Beijing theoretically limits citizens from transferring more than $50,000 abroad per year, EB-5 recruiting firms actively solicited investments far exceeding this threshold. This discrepancy allowed Chinese investors to bypass domestic capital restrictions while legally obtaining residency in the United States. Schweizer contends that this “loophole” enabled significant financial flows into U.S. campaigns and provided channels for influence that the federal government may not have fully monitored.

The book also highlights that some donations were organized through community structures. For instance, during Hillary Clinton’s 2008 presidential primary campaign, numerous donations of several thousand dollars came from the Chinatown neighborhood in New York City. Investigators found that many donors lived in deteriorating buildings and had received instructions from neighborhood associations to support Clinton’s candidacy. Schweizer notes that these associations had links to the United Front Work Department, an entity used by Beijing to promote Communist ideology abroad.

National Security Implications

Beyond the immediate political implications, Schweizer argues that the EB-5 program carries potential national security risks. Foreign investors, particularly those from China, sometimes gained access to sensitive U.S. infrastructure projects, creating avenues for strategic influence. The combination of financial leverage, legal residency, and access to key projects underscores the importance of stringent oversight and vetting within programs that intersect with both national security and immigration policy.

The program’s dual nature—economic stimulus and potential political channel—raises questions about the balance between welcoming foreign investment and protecting the integrity of U.S. institutions. Schweizer cautions that decades of EB-5 activity illustrate how policies intended for growth can also create vulnerabilities when actors with foreign affiliations exploit regulatory gaps.

Congressional Investigations and Ongoing Scrutiny

The debate over foreign influence in U.S. politics has resurfaced in the context of recent congressional investigations. On July 23, 2025, the House Oversight and Government Reform Committee issued subpoenas to former President Bill Clinton and former Secretary of State Hillary Clinton regarding their associations with Jeffrey Epstein’s criminal network. In response to their refusal to comply, the committee voted to advance resolutions holding both Clintons in contempt of Congress. This marks the first instance in which Congress has moved toward contempt citations against a former president and former cabinet official simultaneously.

Lawmakers argued that the depositions were necessary to assess whether federal agencies failed to pursue leads related to Epstein and his network of associates. The investigation highlights the broader concern that public officials’ connections, financial or otherwise, can intersect with criminal networks or foreign influence, reinforcing the importance of accountability and transparency.

The Broader Context of EB-5 and Political Influence

Schweizer situates the EB-5 program within a broader pattern of influence and access. He suggests that the combination of foreign investment, residency benefits, and political donations created a network through which foreign powers could extend soft influence over U.S. politics. While the program’s original intention was economic, Schweizer emphasizes the unintended consequences: “The EB-5 visa system, allegedly designed by individuals with Chinese Communist Party ties, has provided Beijing with numerous channels for introducing untraceable political contributions into American elections over multiple decades.”

The historical pattern of donations from foreign-connected investors, the involvement of campaign operatives later implicated in violations, and the connections to community structures highlight the complex ways in which legal frameworks intersect with political opportunity. Such cases underscore the difficulty of monitoring financial influence when formal legal channels appear legitimate.

Legal and Ethical Considerations

Schweizer’s account raises fundamental questions about the ethics and legality of foreign involvement in U.S. campaigns. While permanent residents may legally contribute to campaigns, the pathway to permanent residency via EB-5 creates a loophole through which individuals with foreign affiliations can exert influence. Legal experts have debated whether these contributions, when coordinated with foreign entities or aligned with their interests, violate the spirit of federal campaign finance laws—even if they comply with the letter of the law.

The ethical concerns are compounded when financial contributions intersect with access to policymakers, as observed in both the 1990s and 2000s. The potential for influence over domestic policy, strategic infrastructure, and electoral outcomes raises questions about whether reforms or stricter oversight are necessary to protect democratic institutions.

Political and Social Implications

The EB-5 program controversy illustrates the intersection of immigration, finance, and politics. It underscores the potential for well-intentioned policy mechanisms to be leveraged in unintended ways, creating both economic opportunity and political vulnerability. Schweizer’s reporting suggests that foreign influence need not be overt or illegal to shape political outcomes; access and soft power can be as significant as formal lobbying or direct interference.

Community involvement in donations, as seen in New York’s Chinatown, further emphasizes how social networks can facilitate collective political action, sometimes guided by foreign actors or affiliated organizations. This dynamic complicates enforcement, as contributions may appear grassroots while being coordinated behind the scenes.

Lessons and Reflections

Schweizer’s investigation into the EB-5 program offers multiple lessons. First, programs that intersect with immigration, finance, and national security require rigorous oversight to prevent exploitation. Second, campaign finance transparency is critical, particularly when donors have international connections. Third, policymakers must balance economic incentives with the protection of democratic processes, ensuring that foreign investment does not inadvertently compromise national security or political integrity.

The historical pattern of EB-5 contributions and related controversies serves as a cautionary tale. While investors legally became permanent residents and were permitted to participate in political campaigns, the indirect influence exercised through coordinated contributions and political connections underscores the need for vigilance and reform.

Ongoing Investigations and Accountability

The House Oversight Committee’s recent actions involving Bill and Hillary Clinton demonstrate that scrutiny over political figures’ associations and financial networks remains an active concern. These investigations intersect with long-standing questions about foreign influence, campaign finance, and national security, illustrating the enduring relevance of historical controversies such as those surrounding EB-5.

By pursuing accountability and transparency, congressional oversight aims to ensure that foreign influence—whether through direct contributions, residency programs, or indirect networks—does not undermine U.S. democratic processes. Schweizer’s reporting emphasizes that vigilance and institutional checks are essential for preserving public trust and national security.

Conclusion

The EB-5 visa program, intended as an economic stimulus mechanism, reveals the complex ways in which immigration, finance, and politics intersect. Through cases documented by Peter Schweizer, we see how foreign nationals, campaign operatives, and community networks combined to influence U.S. political campaigns over multiple decades. From the 1990s controversies involving Maria Hsia and John Huang to the ongoing scrutiny of donations linked to Chinese investors, the narrative underscores the potential vulnerabilities inherent in programs that bridge national borders.

At its core, the EB-5 story highlights the need for careful policy design, stringent oversight, and transparent campaign finance regulations. While foreign investment remains vital for economic growth, safeguarding the integrity of American democratic institutions is paramount. As congressional investigations into high-profile figures continue, the lessons of EB-5 remind policymakers, the public, and political actors that legal structures must be coupled with ethical vigilance to prevent foreign influence from shaping the trajectory of U.S. governance.