Reuters: Chinese Firm Hires Trump-Linked Lobbying Firm to Avoid US Regulatory Scrutiny
A Chinese pharmaceutical group, Grand Pharmaceutical Group, hired Checkmate, a lobbying firm connected to Donald Trump Jr., to navigate a US regulatory review of its $12 million investment in US startup FastWave. FastWave, which produces laser catheters, sought CFIUS review due to national security concerns and a partnership between Grand Pharmaceutical and a Chinese competitor. CFIUS ultimately rejected FastWave's application for a national security review, siding with Grand Pharmaceutical.
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- 📰 Published: April 10, 2026 at 19:00
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This case involves FastWave, a Minnesota-based startup, which sought to divest its Chinese investor, Grand Pharmaceutical Group. The lobbying firm hired by Grand Pharmaceutical, Checkmate, is led by hunting friends of Donald Trump Jr., son of former US President Donald Trump.
FastWave received a $12 million (approximately NT$380 million) investment from Grand Pharmaceutical in 2021 and began producing laser catheters for treating arterial calcification. Under US regulations, the sale of such laser technology to China is controlled as it could be used to enhance China's military capabilities.
According to documents seen by Reuters, the Committee on Foreign Investment in the United States (CFIUS) rejected FastWave's application for a national security review of the investment; this decision had not been previously reported.
Two sources familiar with the matter revealed that Checkmate arranged for Jeff Bialos, Grand Pharmaceutical's attorney, to meet with Chris Pilkerton, who had just taken over as CFIUS chairman, in early January. During the meeting, Bialos argued that the case was purely a commercial dispute with no national security concerns.
The documents show that CFIUS rejected FastWave's review application at the end of January, citing no national security relevance, effectively siding with Grand Pharmaceutical.
Meanwhile, FastWave's attorneys sought to speak with Pilkerton twice in January but were only arranged to speak with CFIUS staff.
Reuters could not determine whether the meeting arranged by Checkmate influenced CFIUS's decision. There is no indication that Donald Trump Jr. was involved in the case, and his spokesperson has not yet responded to requests for comment.
In its rejection decision, CFIUS made no comment on whether the case posed national security concerns. The US Treasury Department emphasized in a statement that CFIUS may reject any filing due to "material misstatements."
Tim LaPira, a political science professor at James Madison University, stated that such lobbying by foreign or local companies is "quite common," adding that "to communicate with the ruling party, you have to find people who have connections with them."
After Reuters explained the case to six China affairs experts and three informed Democratic congressmen, they expressed concern that Chinese companies are further influencing the Trump administration's decisions by hiring lobbyists closely connected to Trump's circle.
White House spokesperson Kush Desai stated that "CFIUS has never changed its due diligence, review, and enforcement operations, and has always firmly upheld US national security interests," emphasizing that any claims that the Trump administration weakened CFIUS at the request of special interests are "completely false."
Checkmate spokesperson Chris LaCivita Jr. stated that Grand Pharmaceutical is "just a company investing in US enterprises, and Checkmate assisted it in handling a regulatory issue in the short term," emphasizing that the company "does not pose a national security threat."
According to filings, Grand Pharmaceutical hired Checkmate in December last year, paying $30,000 for two weeks of work on CFIUS-related matters.
Documents show that FastWave became concerned about technology leakage after seeing a press release on Grand Pharmaceutical's official website disclosing its cooperation with Jiangsu Zhenyi Medical Technology Co., a Chinese competitor of FastWave.
FastWave, which initially welcomed Grand Pharmaceutical's investment, filed a review application with CFIUS in 2025. According to documents, FastWave hoped CFIUS would force Grand Pharmaceutical to sell its 40% stake or become a passive shareholder, citing concerns about Chinese theft of patents and obstruction of fundraising.
Under the 2021 investment agreement, Grand Pharmaceutical holds veto power over FastWave's future capital increases, a common practice for investors to avoid dilution of their holdings.
Reuters could not reach Jiangsu Zhenyi Medical Technology. Bialos stated that Grand Pharmaceutical merely distributes the company's products and that this does not conflict with its investment commitments to FastWave. Reuters could not independently confirm whether the relationship violates the agreement between Grand Pharmaceutical and FastWave. (Compiled by Hung Chi-yuan) 1150410
FastWave received a $12 million (approximately NT$380 million) investment from Grand Pharmaceutical in 2021 and began producing laser catheters for treating arterial calcification. Under US regulations, the sale of such laser technology to China is controlled as it could be used to enhance China's military capabilities.
According to documents seen by Reuters, the Committee on Foreign Investment in the United States (CFIUS) rejected FastWave's application for a national security review of the investment; this decision had not been previously reported.
Two sources familiar with the matter revealed that Checkmate arranged for Jeff Bialos, Grand Pharmaceutical's attorney, to meet with Chris Pilkerton, who had just taken over as CFIUS chairman, in early January. During the meeting, Bialos argued that the case was purely a commercial dispute with no national security concerns.
The documents show that CFIUS rejected FastWave's review application at the end of January, citing no national security relevance, effectively siding with Grand Pharmaceutical.
Meanwhile, FastWave's attorneys sought to speak with Pilkerton twice in January but were only arranged to speak with CFIUS staff.
Reuters could not determine whether the meeting arranged by Checkmate influenced CFIUS's decision. There is no indication that Donald Trump Jr. was involved in the case, and his spokesperson has not yet responded to requests for comment.
In its rejection decision, CFIUS made no comment on whether the case posed national security concerns. The US Treasury Department emphasized in a statement that CFIUS may reject any filing due to "material misstatements."
Tim LaPira, a political science professor at James Madison University, stated that such lobbying by foreign or local companies is "quite common," adding that "to communicate with the ruling party, you have to find people who have connections with them."
After Reuters explained the case to six China affairs experts and three informed Democratic congressmen, they expressed concern that Chinese companies are further influencing the Trump administration's decisions by hiring lobbyists closely connected to Trump's circle.
White House spokesperson Kush Desai stated that "CFIUS has never changed its due diligence, review, and enforcement operations, and has always firmly upheld US national security interests," emphasizing that any claims that the Trump administration weakened CFIUS at the request of special interests are "completely false."
Checkmate spokesperson Chris LaCivita Jr. stated that Grand Pharmaceutical is "just a company investing in US enterprises, and Checkmate assisted it in handling a regulatory issue in the short term," emphasizing that the company "does not pose a national security threat."
According to filings, Grand Pharmaceutical hired Checkmate in December last year, paying $30,000 for two weeks of work on CFIUS-related matters.
Documents show that FastWave became concerned about technology leakage after seeing a press release on Grand Pharmaceutical's official website disclosing its cooperation with Jiangsu Zhenyi Medical Technology Co., a Chinese competitor of FastWave.
FastWave, which initially welcomed Grand Pharmaceutical's investment, filed a review application with CFIUS in 2025. According to documents, FastWave hoped CFIUS would force Grand Pharmaceutical to sell its 40% stake or become a passive shareholder, citing concerns about Chinese theft of patents and obstruction of fundraising.
Under the 2021 investment agreement, Grand Pharmaceutical holds veto power over FastWave's future capital increases, a common practice for investors to avoid dilution of their holdings.
Reuters could not reach Jiangsu Zhenyi Medical Technology. Bialos stated that Grand Pharmaceutical merely distributes the company's products and that this does not conflict with its investment commitments to FastWave. Reuters could not independently confirm whether the relationship violates the agreement between Grand Pharmaceutical and FastWave. (Compiled by Hung Chi-yuan) 1150410