Matt Gaetz Warns: China Uses Hollywood for Strategic Leverage

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Congressman Matt Gaetz claims Beijing’s investments in U.S. entertainment and sports industries are tools of influence and control, not mere business deals.

By TRH Foreign Affairs Desk

New Delhi, November 3, 2025 — Firebrand Republican Congressman Matt Gaetz has accused China of using its investments in the NBA and Hollywood to subtly expand its political and economic leverage over the United States. Speaking to an American TV channel, Gaetz argued that Beijing’s business dealings are far from benign — they are part of a long-term strategy to manipulate global narratives and gain control over critical sectors.

“I think it would really help my audience to understand how China leverages those investments,” Gaetz said, adding: “When they make deals with the NBA, what are they getting for it? When they invest in studios in Hollywood, what is the output that benefits them?”

Gaetz described China’s approach as “LTS — leverage, time, and a smile.” He explained that the Chinese Communist Party identifies key leverage points in any negotiation, operates on no strict deadlines, and maintains a powerful propaganda system to control domestic sentiment.

“They can afford to have markets dip,” Gaetz noted, adding: “They have a propaganda organ that’s all in sync over there, so they can get their 1.4 billion people feeling okay about whatever Xi’s agenda is. And when you think you’re done with a negotiation, they smile — and then stab you right in the back.”

He further warned that decades of “reckless capitalism” and dependence on Chinese supply chains — especially for rare earth elements — have weakened America’s negotiating position. “It’s why Trump is having such a hard time negotiating with them right now,” he added.

Gaetz also argued that the US should be wary of accepting further Chinese investments, asserting that “it will just give them more leverage over time and put us in an even harder position than we are today.”

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