UC Berkeley is under investigation for allegedly hiding hundreds of millions in Chinese donations while sharing sensitive technology information, raising concerns about foreign influence and regulatory oversight in American academia.
At a Glance
- The Department of Education has launched an investigation into UC Berkeley for allegedly failing to report hundreds of millions in donations from China
- Berkeley is accused of not disclosing approximately $220 million received for the Tsinghua-Berkeley Shenzhen Institute
- Federal law requires universities to report foreign donations exceeding $250,000 twice yearly
- The investigation will examine if Berkeley shared sensitive technological information with Chinese state-linked entities
- This probe follows President Trump’s executive order targeting foreign influence in American universities
Berkeley Under Federal Investigation
The Department of Education announced on April 25 that it has launched an investigation into the University of California, Berkeley, over allegations that the prestigious institution failed to disclose hundreds of millions of dollars in donations from Chinese entities.
The investigation also aims to determine whether Berkeley shared information about what officials described as an “important technology.” The university now faces a 30-day deadline to comply with a comprehensive records request as federal authorities examine possible violations of mandatory reporting requirements under Section 117 of the Higher Education Act.
“The University of California, Berkeley, is under investigation for allegedly not reporting hundreds of millions of dollars in donations from a Chinese entity and allegedly sharing information about an “important technology,” the Department of Education announced on April 25.”
The investigation centers on approximately $220 million that Berkeley allegedly received from the Chinese government for the Tsinghua-Berkeley Shenzhen Institute. Federal law mandates that universities report foreign gifts or contracts exceeding $250,000 twice yearly.
This reporting requirement serves as a transparency mechanism designed to prevent undue foreign influence in American higher education institutions, particularly those conducting sensitive research with potential national security implications.
Broader Concerns About Foreign Influence
The Berkeley investigation is part of a larger federal initiative to monitor and regulate foreign financial contributions to American universities. Under the Trump administration, at least 19 investigations into universities regarding foreign funding were initiated, with particular focus on donations from China, Qatar, and Saudi Arabia.
A 2020 report uncovered that U.S. universities had failed to report over $6.5 billion in foreign gifts and contracts, highlighting systemic compliance failures across the higher education sector.
Education Secretary Linda McMahon has criticized the previous administration for what she described as lax enforcement of reporting requirements. According to Department of Education data, U.S. universities have received more than $19.6 billion in foreign donations or contracts since 2014. While accepting foreign donations is not illegal, the lack of proper disclosure has raised concerns about transparency and potential conflicts of interest in academic research and institutional decision-making.
National Security Implications
The investigation into UC Berkeley carries significant national security implications. Federal authorities are particularly concerned about whether U.S. technologies were transferred to Chinese state-linked entities through academic partnerships. A report by Republican members of the House Select Committee on the Chinese Communist Party highlighted concerns that American tax dollars might inadvertently be aiding China’s technological and military advancements through academic collaborations that lack proper oversight.
Berkeley has stated that it “engage[s] only in research whose results are always openly disseminated around the world” and claims it is no longer affiliated with the Tsinghua-Berkeley Shenzhen Institute. University spokesperson Dan Mogulof indicated that Berkeley has been cooperating with federal inquiries regarding Section 117 reporting issues for the past two years and will continue to do so. The Treasury Department is assisting with the investigation, examining financial records for potential wrongdoing.
Renewed Enforcement Efforts
This investigation signals a renewed emphasis on enforcing foreign donation reporting requirements. The University of Texas is being cited as a model for compliance with these regulations, suggesting a push toward standardized reporting practices across all American universities.
Many investigations that were initiated under the Trump administration were reportedly stalled during the Biden administration, with some being closed by 2022, though one led to the conviction of a Harvard professor for ties to a Chinese recruitment program.
The Berkeley investigation coincides with a similar probe into Harvard University regarding its foreign financial ties. These investigations reflect growing bipartisan concern about the influence of foreign funding in American academic institutions, particularly from nations with complicated diplomatic relationships with the United States. As Berkeley faces scrutiny, the outcome may establish precedents for how federal authorities address unreported foreign donations at other universities across the country.