A recent report from Strategy Risks highlights that a public university has been piping students into roles within China’s state-owned enterprises and government. Missouri State University (MSU) has reportedly trained over 1,500 managers for these entities, including those in the defense sector, through its MBA program by 2018. This is notable because MSU is funded by taxpayers, and the report suggests that U.S. support for this initiative amounts to tens of millions of dollars.
The estimation of taxpayer funding relies on available figures from a recruiting presentation by the Chinese Agricultural University. However, the report indicates some inconsistencies in the financial details provided. Different recruitment materials have mentioned various costs, subsidies, and entities responsible for payment.
An MSU spokesperson stated, “We are aware of the report released by Strategy Risks regarding Missouri State University. No taxpayer dollars were directed toward the program, as the report alleges but readily admits it cannot substantiate.”
By 2015, 107 finance professionals from the Aviation Industry Corporation of China (AVIC) had graduated from the MSU MBA program. Notably, AVIC is China’s leading state-owned aviation and defense group, classified by the Department of War as a “Communist Chinese military company,” which is significant given a 2020 Executive Order that banned Americans from holding securities in such firms.
One of the program’s graduates later assumed top positions within AVIC International Financial Leasing Co., and had already held a managerial role when he completed his MBA in 2013. AVIC has been a major player in China’s arms exports and has been linked to military aviation developments and various international conflicts, as well as human rights violations.
According to the report, the AVIC students at MSU followed a conventional business curriculum, though AVIC seemed to prioritize the qualifications obtained over classroom teachings.
The spokesperson from MSU added, “As the report further acknowledges, the students studied a ‘conventional business curriculum’ with no evidence of espionage or misconduct. All admitted students were required to follow U.S. State Department visa regulations.”
Several graduates have since climbed the ranks in China’s strategic sectors, particularly in surveillance technology. The report also states that the Chinese Communist Party (CCP) controlled admissions, requiring candidates to be party members cleared for international travel, and prepared cohorts for the program.
The MSU MBA initiative began in 1999 when representatives from the CCP sought out U.S. programs to train communist managers, launching the program formally in 2001.
One graduate from 2010 became a leader in a major AI and voice recognition firm, which faced restrictions from the U.S. Commerce Department in 2019 due to its role in the surveillance of Uyghurs and other Muslim minorities in Xinjiang.
Additionally, the former vice president of MSU, Jim Baker, received the Chinese “Friendship Award” in 2012 for promoting state interests, visiting China numerous times on behalf of the university.
Even as of July 2024, some Chinese university websites continue to promote the MSU MBA program. MSU has a partnership with Liaoning Normal University, established with approval from both the Chinese Ministry of Education and its own Board of Governors, allowing some students the option to transfer to MSU to complete their degrees.
