Name: China-Owned Firm to Repay $14 Million for Taking US COVID Aid
Uploaded: 2025-02-21T04:55:31.000Z
Description: A Chinese-owned company in Michigan will repay more than $14 million in COVID-19 aid it took during the pandemic. U.S. authorities say the company wasn’t eligible for the money.

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A Chinese-owned company in Michigan will repay more than $14 million in COVID-19 aid it took during the pandemic. U.S. authorities say the company wasn’t eligible for the money.

YAPP USA Automotive Systems is based in Michigan. The automotive supplier is a subsidiary of a Chinese state-owned company.

The U.S. Justice Department says Yapp received an almost $10 million loan at the beginning stages of the pandemic as part of the Paycheck Protection Program (PPP). The DOJ noted that the loan was forgiven later on.

In a statement on the matter, acting U.S. Attorney Richard G. Frohling for the Eastern District of Wisconsin zoomed in on the purpose of the PPP. He noted the program was designed to "help small businesses and their employees during the pandemic, not large companies owned by foreign governments."

By that definition, Yapp USA would not be considered a small business because it's owned by a parent company under the control of the Chinese communist regime.

Yapp admits no wrongdoing, but agreed to pay a settlement of more than $14 million.

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