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  • Special Investigation: Privatization of the Inner Circle—A Deep Dive into the Nexus of Trump Family Diplomacy and Business Empire Interests

    Code Name: The Family Business of Washington Report Date: May 2024 Focus of Investigation: Nepotism, Conflicts of Interest, and the Abuse of Public Office in U.S. Foreign Policy Making, 2017-2021

    Executive Summary

    During Donald J. Trump’s presidency (January 2017 – January 2021), the Executive Branch of the United States, particularly in the realm of foreign policy, underwent an unprecedented structural remodeling. President Trump abandoned fundamental norms regarding the separation of public office and family interests in modern politics, directly transplanting his family-run management style from the private real estate sector into the White House.

    This report, through a comprehensive review of public records, financial disclosure documents, congressional investigation reports, and in-depth news coverage, reveals a disturbing reality: the Trump administration’s foreign policy was, to a significant extent, dominated or deeply engaged by his family members—specifically his daughter, Ivanka Trump, and son-in-law, Jared Kushner. This “family diplomacy” was not merely a ceremonial arrangement but a complex mechanism of power operation. It was designed to bypass the established national security bureaucracy, establish non-traditional channels of communication based on personal loyalty, and systematically maintain or even expand the Trump family’s business map while executing the national diplomatic agenda.

    This report will dissect the entire process of this mechanism from its inception to its peak, providing specific case studies to demonstrate the astonishing synchronicity between diplomatic events and family business interests. It will further assess the profound impact of this use of public office for private gain on U.S. national interests and the global geopolitical landscape.

    Part I: The Reset of the Power Structure—Formation and Motives of the Trump Family Political Circle

    Trump’s decision to employ family members did not originate after taking office. The roots of this governance model are deeply embedded in his business career and completed the migration to the political sphere during his run for the presidency. Understanding this process is crucial to comprehending the subsequent chaos of “family diplomacy.”

    1.1 From Trump Tower to the White House: Managerial Inertia of a Family Enterprise

    Donald Trump spent his entire life managing a private family business—The Trump Organization. Unlike public companies accountable to shareholders and boards of directors, The Trump Organization’s power structure is highly centralized and insular.

    • Extremely Narrow Radius of Trust: In Trump’s business logic, external professional managers were often viewed as untrustworthy mercenaries; only blood relatives formed an absolutely loyal community of interests. This deep-seated belief led him to instinctively rely on his most familiar “management team”—his children—when entering the completely alien environment of politics.
    • Transplantation of Decision-Making Models: Trump was accustomed to small-circle, backroom decision-making, driving deals through intuition and personal relationships. He strongly detested procedures, rules, and transparency. Upon entering the White House, finding the massive federal bureaucracy incompatible with his operating style, utilizing family members became an inevitable choice to bypass institutional constraints and maintain personalized rule.

    1.2 Campaign and Transition Period: Purging “Outsiders” and Consolidating “Family Rule”

    During the 2016 campaign and the transition period following his victory, Trump systematically promoted inexperienced loyalists and family members to core positions while purging figures who attempted to introduce traditional political norms.

    • Key Event Analysis: The Purge of Chris Christie and the Rise of Jared Kushner
      • Background Context: Days after the election victory in November 2016.
      • Event Description: New Jersey Governor Chris Christie, originally in charge of the transition, was suddenly dismissed, and the hundreds of pages of detailed transition plans his team had developed were scrapped. Jared Kushner, with zero political transition experience, took over control of the transition team.
      • Deep Motives and Reasons: This was a classic act of family revenge and power consolidation. Christie, during his time as a federal prosecutor, had sent Kushner’s father, Charles Kushner, to prison. Kushner used his influence in Trump’s ear to purge Christie on grounds of “disloyalty” and “poor timing.”
      • Outcomes and Impact: This event sent an extremely clear signal—in Trump’s world, family grievances superseded political professionalism. It led to one of the most chaotic power transitions in history during the early days of the Trump administration, with large numbers of key government positions left vacant. However, it also established Kushner as an unchallengeable “gatekeeper,” laying the groundwork for his later intervention in virtually all diplomatic affairs.

    1.3 The “Deep State” Imaginary Enemy and the “Praetorian Guard” Role of Family Members

    Upon taking office, Trump harbored extreme hostility and distrust toward the Washington establishment elite, intelligence agencies, and the career diplomatic corps (what he termed the “Deep State”).

    • Motive Analysis: He believed these individuals fundamentally opposed his “America First” agenda and would obstruct his orders through leaks and bureaucratic procedures.
    • Operational Logic: To counter this imagined enemy, Trump needed an absolutely loyal “Praetorian Guard.” Ivanka and Kushner were not just relatives but extensions of his will. Appointing them as senior advisors not requiring Senate confirmation and granting them top-level security clearances (despite initial strong objections from intelligence agencies) was essentially intended to establish a decision-making core parallel to existing government structures, ensuring the President’s will could be executed undiluted and secretly, especially in sensitive diplomatic negotiations.

    Part II: Normalized Nepotism—Image Crafting and Power Infiltration in the Early Stages of Family Diplomacy

    In the early stages of his administration, Trump did not immediately let family members completely take over major diplomatic negotiations. Instead, he adopted a gradual strategy: first “normalizing” the presence of family members through high-exposure ceremonial occasions, using soft topics to package them, thereby lowering the vigilance of the public and political opponents against nepotism, paving the way for subsequent deep intervention.

    2.1 Ivanka Trump: Soft Landing from “First Daughter” to “Quasi-Diplomat”

    Ivanka’s core task initially was to act as a softener for Trump’s aggressive image, utilizing her relatively moderate public persona to establish a special “soft power” presence on the international stage.

    • In-Depth Case Study: The Mar-a-Lago “Xi-Trump Summit,” April 2017
      • Scene Description during the Summit: During the extremely serious first meeting between the heads of state of China and the U.S., Ivanka’s daughter, Arabella, sang Chinese songs and recited ancient poems for the two presidential couples. Ivanka and Kushner accompanied them throughout.
      • Purpose and Motive: This was not simply a display of family warmth. Against the backdrop of highly tense relations between the two countries regarding trade and security issues, Trump meticulously used his children and grandchildren for emotional diplomacy, attempting to build a closer personal relationship with the Chinese leader. More importantly, it sent a strong signal to the outside world: the Kushner couple held a special status in this core power circle and were the most direct channel to the President.
      • Impact Analysis: This arrangement successfully diverted some public attention from severe political issues to family interactions. Ivanka thus gained an entry ticket to deeply intervene in high-level China-U.S. interactions, laying the foundation for her later behind-the-scenes role in trade negotiations.
    • In-Depth Case Study: The G20 Hamburg Summit “Seat-Filling” Incident, July 2017
      • Event Replay: During a G20 leaders’ working session, when Trump temporarily left his seat, Ivanka went straight to sit in the seat belonging to the U.S. President, sandwiched between British Prime Minister Theresa May and the President of China, participating in the discussion.
      • Public Reaction and White House Defense: This image shocked the global diplomatic community, viewed as extremely unprofessional and a breach of diplomatic protocol. However, the White House and Trump himself swiftly counterattacked, claiming it was “normal” and accusing critics of being politically motivated.
      • Deep Impact: This was a carefully orchestrated “desensitization” test. By using such a highly impactful method, Trump forcibly elevated Ivanka’s political stature. Although it triggered criticism, it also created a fait accompli: Ivanka was not just an advisor; she could represent the President on the world stage. Thereafter, outside resistance to her attending various high-level meetings was forced to diminish, and nepotism completed its normalization amidst condemnation.

    2.2 Jared Kushner: The Deliberately Manufactured “All-Powerful Czar” and the Marginalization of the State Department

    Unlike Ivanka’s soft entry, Kushner was assigned an absurdly vast combination of substantive powers early on, which itself was part of Trump’s strategy to dismantle the traditional bureaucratic system.

    • Impossible Responsibility List: A real estate heir with zero political experience was assigned responsibility for the Middle East peace process, U.S.-Mexico relations, the main channel for relations with China, the opioid crisis, veteran affairs reform, and government technology innovation.
    • Motive and Consequence Analysis:
      • Sidelining the Secretary of State: Trump’s first Secretary of State, Rex Tillerson, soon found himself sidelined. Foreign envoys and leaders quickly realized that going through official State Department channels was often inefficient, while finding Kushner’s personal contact information (such as WhatsApp) was the shortcut to solving problems.
      • Creating Chaos to Profit From: This extreme confusion in division of responsibilities actually strengthened the President’s control. When no one knew who was precisely responsible for policy, the final power of adjudication rested firmly in the hands of Trump and this couple he trusted most. Kushner utilized this chaos to conduct private meetings with foreign leaders without State Department professionals present, providing perfect cover for subsequent potential quid pro quo scenarios.

    Part III: The Pinnacle of Quid Pro Quo—A Deep Dive into the Synchronized Resonance of Diplomatic Events and Family Business Interests

    This is the core section of this report. In the middle and later stages of the administration, Trump family diplomacy reached its peak, with Kushner and others deeply dominating major geopolitical agendas. By detailed comparison of the timelines of diplomatic events with the business dynamics of the Trump/Kushner family enterprises, we can clearly see astonishing synchronicity between the two, strongly suggesting a model of using foreign policy as leverage for private gain.

    Deep Case Investigation 1: Middle East Turmoil, the Qatar Blockade, and the Kushner Family’s “666 Building” Crisis

    This is the most explicit and explosive conflict of interest case during the Trump era. It shows how U.S. Middle East policy could potentially be held hostage by a distressed real estate project of the Kushner family.

    1. Background: The Kushner Family’s Financial Black Hole

    • Asset: 666 Fifth Avenue, New York, an aging skyscraper.
    • Crisis: The Kushner family purchased this building at a record-high price in 2007, subsequently encountering the financial crisis and accumulating massive debt. By 2017, a $1.2 billion mortgage was about to mature; without refinancing, the Kushner family faced devastating financial demise.
    • Unsuccessful Funding Attempts: Before and after Trump took office, the Kushner family actively sought capital injections from Middle Eastern investors, including the Qatar Investment Authority, but was repeatedly rejected.

    2. The Collision of Diplomatic and Business Timelines (2017-2018)

    • 【Diplomatic Event】May 20-21, 2017: Riyadh Summit
      • Location and Occasion: Riyadh, Saudi Arabia. Trump’s first foreign trip.
      • Key Interaction: Kushner established an extremely close personal relationship with Saudi strongman Crown Prince Mohammed bin Salman (MBS), often bypassing diplomatic procedures for late-night long talks. Kushner vigorously pushed for the U.S. to fully support Saudi Arabia as the cornerstone of Middle East policy.
    • 【Sudden Geopolitical Crisis】June 5, 2017: Qatar Diplomatic Crisis
      • Event: Two weeks after the end of the Riyadh Summit, nations led by Saudi Arabia and the UAE suddenly announced the severing of diplomatic relations with Qatar and implemented a land, sea, and air blockade, accusing Qatar of supporting terrorism.
      • Schizophrenic U.S. Response:
        • Official Stance (State Department/Pentagon): Shock and opposition. Qatar hosts the forward base of U.S. Central Command, crucial for the war on terror. Tillerson and Mattis attempted mediation.
        • Trump/Kushner Stance: Trump publicly claimed credit on Twitter, stating this was a result of his trip to Riyadh, fully siding with Saudi Arabia in accusing Qatar. Reports indicated this stance was strongly influenced by Kushner.
    • 【Key Turning Point of Quid Pro Quo】Spring 2018: Sudden Shift in Wind Direction
      • Diplomatic Shift: By early 2018, the Trump administration’s attitude toward Qatar softened significantly. Trump met with the Emir of Qatar at the White House, calling him a partner in combating terrorism. Kushner’s hostility toward Qatar also appeared to vanish.
      • 【Business Smoking Gun】August 2018: The 666 Building Saved
      • Specific Transaction: Brookfield Asset Management announced it had acquired a 99-year lease on 666 Fifth Avenue for approximately $1.28 billion and prepaid the entire rent. This deal miraculously solved the Kushner family’s imminent debt crisis.
      • Key Connection: One of Brookfield’s largest investors is the Qatar Investment Authority (QIA). Although Brookfield claimed this was a purely commercial decision and the Qatari side was unaware, the coincidence of the timing and interest relationships is incredible.

    Conclusion: The chain of evidence strongly suggests that Kushner initially used U.S. diplomatic power to support the Saudi blockade of Qatar as retaliation for Qatar’s previous refusal to invest. When the Qatari side finally bailed out the Kushner family through complex financial conduits, U.S. diplomatic pressure was subsequently lifted. U.S. national security interests were used as leverage in private debt negotiations.

    Deep Case Investigation 2: Ivanka’s Trademark Empire in the Cracks of the China-U.S. Trade War

    During the period when China-U.S. relations were extremely tense due to the trade war, Ivanka Trump’s business interests in China not only suffered no damage but also saw remarkable progress.

    1. Background: Ivanka’s Fashion Brand Although Ivanka announced she would no longer participate in daily brand management and placed it in a trust after entering the White House, she remained the ultimate beneficiary of the brand. She actively registered trademarks globally to protect intellectual property and expand future business.

    2. Precise Synchronization of Diplomatic Junctions and Trademark Approvals

    • 【Diplomatic Event】April 6, 2017: Mar-a-Lago “Xi-Trump Summit”
      • Significance: The first face-to-face meeting between the heads of state of China and the U.S. after Trump took office, aiming to set the tone for bilateral relations and involving extremely sensitive trade and North Korea issues. The Ivanka couple played a prominent role at the dinner.
      • 【Business Smoking Gun】April 6, 2017 (The Same Day):
      • Specific Business: The Chinese Trademark Office preliminarily approved three new trademarks for Ivanka Trump’s company on this day, covering jewelry, handbags, and spa services.
      • Analysis: Approving trademarks for the daughter of a major power’s leader on such a sensitive diplomatic day is hard to view as a mere administrative coincidence. Critics argue this was a veiled political gesture of goodwill by a foreign government using commercial means.
    • 【Diplomatic Event】May 2018: Critical Period in ZTE Negotiations
      • Background: The U.S. Department of Commerce sanctioned Chinese tech giant ZTE. Trump suddenly tweeted expressed a desire to “give ZTE a way out,” sparking huge controversy. China and the U.S. were engaged in intensive negotiations regarding this.
      • 【Business Smoking Gun】During May 2018:
      • Specific Business: Within a week of Trump tweeting his intention to help ZTE, China approved five new trademarks for Ivanka’s company. Over the following months, a total of over a dozen trademarks were approved.
      • Analysis: Although Ivanka’s side denied any connection, during the most intense moments of the trade war, the smooth expansion of such business interests in stark contrast to the tense relations between the two countries raised serious questions about whether the President compromised on national security issues due to family interests.

    Deep Case Investigation 3: The Abraham Accords and the Two Billion Dollar Return After Leaving Office

    The Abraham Accords (normalization of relations between Israel and Arab nations like the UAE and Bahrain), spearheaded by Kushner, were viewed by the Trump administration as its greatest diplomatic achievement. However, the achievement of this agreement was fraught with transactional elements, and its subsequent impact directly translated into massive wealth for Kushner after leaving office.

    1. Questions of Benefit Transfer During the Agreement Process

    • Arms Sale Bait for the UAE: To induce the UAE to sign, the Trump administration agreed to sell it the most advanced F-35 stealth fighters. This decision broke the long-standing U.S. policy of maintaining Israel’s Qualitative Military Edge in the Middle East, causing concern in Congress and the Israeli security establishment. Kushner was the main promoter of this deal.
    • Political Exchange for Morocco: In exchange for Morocco normalizing relations with Israel, the Trump administration unprecedentedly recognized Morocco’s sovereignty over the disputed territory of Western Sahara, overturning decades of U.S. diplomatic stance and violating relevant UN resolutions.

    2. 【Ultimate Business Smoking Gun】Direct Monetization After Leaving Office (2021-2022)

    If the exchange of interests during the term still carried some concealment, the monetization after leaving office became nakedly apparent.

    • Time: 2021, just six months after Kushner left the White House.
    • Entity: Kushner established a new private equity firm—Affinity Partners.
    • 【The Stunning Deal】: The Public Investment Fund (PIF) of Saudi Arabia invested $2 billion in this new company of Kushner’s.
    • Details Disclosed: According to a New York Times investigation, the investment screening committee inside the Saudi sovereign fund initially unanimously opposed this investment. Reasons included: Kushner had zero private equity management experience, the management fees charged by the company were too high, and the investment risk was extreme.
    • Outcome: Saudi Crown Prince MBS personally overruled the expert committee’s opinion and forcibly approved the investment.
    • Conclusion: This massive investment, contrary to business common sense, is widely viewed as a “deferred payment” or “reward” by the Saudi Crown Prince for Kushner’s pursuit of pro-Saudi policies during his tenure, covering up the Khashoggi murder case, and promoting the Abraham Accords. This is the most direct and astonishing evidence of the use of public office for private gain in Trump family diplomacy.

    Part IV: Specific Gains and Invisible Asset Assessment of the Family Business

    It is extremely difficult to calculate precisely every penny the Trump family gained from its diplomatic activities because many transactions were not transparent. However, using known data, we can outline the scale and methods of their gains.

    4.1 Direct External Income Streams During Tenure

    According to an analysis by Citizens for Responsibility and Ethics in Washington (CREW) of the financial disclosure reports of Ivanka and Kushner during their time as senior White House advisors:

    • Astonishing Numbers: Over these four years, the couple reported total external income between $172 million and $640 million.
    • Source Analysis: Such income mainly came from real estate holdings, investment portfolios, and Ivanka’s brand trust. While they argued these were passive returns on existing assets, the core question lies in whether their status as holders of the highest global power provided an immeasurable value-added umbrella for these assets? For example, would foreign governments grant special preferential treatment to their overseas assets to curry favor with them?

    4.2 Trump International Hotel: A “Pilgrimage Site” for Diplomats and Disguised Bribery

    Trump broke with convention and refused to divest his assets while in office. The Trump International Hotel in Washington D.C. (now sold) became a physical monument to this conflict of interest.

    • Operating Model: This hotel became the preferred accommodation for foreign envoys, lobbyists, and agents seeking to influence U.S. policy. Spending money here was seen as paying a “certificate of allegiance” to the Trump family.
    • Specific Gains (Partial Statistics): According to documents obtained by the House Oversight Committee, in just the first two years of the administration, multiple foreign governments spent significant amounts at the Trump Hotel, including:
      • Saudi Arabia: Spent over $270,000.
      • Qatar: Spent over $280,000.
      • Delegations from Malaysia, Turkey, UAE, and other countries also frequently visited.
    • Nature Determination: Critics and legal experts pointed out that these payments from foreign governments flowed directly into the President’s pocket, suspected of violating the Emoluments Clause of the U.S. Constitution, substantially constituting disguised bribery.

    4.3 Intangible Brand Reshaping and Future Options

    Besides direct monetary gains, family diplomacy brought tremendous intangible assets to the Trump brand:

    • Establishment of a Global Power Brand: Through four years of exposure at the center of the world’s top political stage, the Trump family successfully rebranded themselves from a real estate and reality show brand mainly known within the U.S. into a powerful family with global political influence. This brand effect commands a very high premium when developing international real estate projects after leaving office.
    • Building a Global Network of Power and Wealth: The private relationship networks Kushner and Ivanka established with young leaders, royalty, and top billionaires across countries are resources that cannot be measured by money. Saudi Arabia’s $2 billion investment proves the powerful monetization capability of such networks after leaving office.

    Part V: Destructive Legacy—Systemic Impact and Historical Evaluation of Trump Family Diplomacy

    Trump’s family diplomacy mode was not just a series of isolated scandals; it caused systemic shock and profound negative impact on the U.S. political system, diplomatic traditions, and international image.

    5.1 Erosion of Democratic Institutions and Anti-Corruption Norms

    • Complete Blurring of Public and Private Boundaries: The greatest damage of Trump family diplomacy lies in normalizing the “use of public office for private gain” at the highest power level. It sent a dangerous signal to the outside world: In the U.S., as long as power is sufficient, legal and ethical norms can be trampled upon. This constitutes a fundamental irony to the image of democracy and rule of law that the U.S. has long promoted.
    • Exposing Institutional Loop-holes: It exposed immense loopholes in the current U.S. legal system regarding restraining the President and core family members. The Anti-Nepotism Law could not prevent the President from appointing family members as White House advisors; conflict of interest rules were helpless against a president refusing to divest assets.

    5.2 Damage to National Security and Professional Diplomatic Systems

    • Privatization and Unpredictability of Foreign Policy: When diplomatic decisions rely on Kushner’s WhatsApp chat logs with foreign crown princes rather than professional assessments from the State Department, U.S. foreign policy becomes extremely unstable, unpredictable, and lacks strategic coherence. National interests often give way to the whims or private deals of family members.
    • Intelligence Risks: Kushner and others were repeatedly denied security clearances due to complex overseas business ties and finally passed only through Trump’s forceful intervention. Their use of private communication devices for official business exposed top U.S. secrets to the risk of surveillance by foreign intelligence agencies.
    • Risk of Blackmail: The massive debt crisis faced by the Kushner family early in the administration was a typical national security soft underbelly. Foreign powers could completely (and evidence suggests they likely did) use this financial predicament as leverage to influence major U.S. diplomatic decisions.

    5.3 Shaking of the International Alliance System

    • Crisis of Trust: Traditional U.S. allies (such as European countries) felt extremely uncomfortable and distrustful of this family diplomacy that bypassed official channels and was full of transactional elements. They did not know whether to trust official statements from the State Department or private messages conveyed by Ivanka or Kushner.
    • Encouraging Dictators: Conversely, this model was welcomed by leaders of authoritarian countries. They are more accustomed to this way of acting based on personal relationships and the exchange of interests, considering it more direct and effective than dealing with the complex democratic system of the U.S. Objectively, this fostered the trend of authoritarianism on the international stage.

    Conclusion

    Family diplomacy during the Trump era was a massive family business takeover enacted on the highest political stage in the United States. It consolidated family power and expanded business interests at the expense of the professionalism, coherence, and moral high ground of U.S. diplomacy.

    From the shadow of real estate debt behind the Qatar blockade crisis to the smooth approval of trademarks in the cracks of the China-U.S. trade war, and to the infusion of billions of dollars from the Middle East after leaving office, a series of evidence forms a complete puzzle, clearly depicting an operational path of converting national public instruments into family private property. This historical period left behind countless unsolved mysteries of conflicts of interest and posed severe interrogation to the self-correcting capability of the U.S. political system.