China's Shipping Company Makes The Wrong Kind Of Splash

Scandal swirls around the state-owned shipping company

Officials of Long Beach, Calif., were stunned to find themselves dragged into the Donorgate scandal. Earlier this year, the town's port authority was negotiating with China Ocean Shipping (Group) Co. (Cosco), a Chinese state-owned firm that wants to lease and operate a container facility on the site of a shuttered U.S. Navy yard. A judge was delaying the deal because of preservationists' protests over the possible destruction of historic buildings on the site. But then came the shocker: media reports that alleged possible connections between Cosco and Democratic Party officials. The implication was that the Democrats were helping Cosco in Long Beach as part of a payback.

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