In 2019, a Hawaii-based individual named Bai became the focus of scrutiny after allegations emerged that he sold legislative internships to Chinese students for $5,000 each. Former Hawaii House of Representatives member Matthew LoPresti of Oahu, whose office unexpectedly received multiple Chinese interns, described the situation as perplexing and concerning, particularly given the sensitive national defense work his office conducted.

LoPresti, who had been involved in Hawaii’s missile defense program and worked with the FBI on counterintelligence matters, noted that the arrival of these interns coincided with his participation in security briefings and meetings at military intelligence headquarters. He expressed suspicion about the true intentions of the interns, remarking that they did not appear to be in Hawaii for the cultural exchange purposes initially claimed. LoPresti reported the matter to the FBI and subsequently worked to discontinue the program.

At the time, local news sources indicated that Bai had been engaged by Chinese placement firms to facilitate several of these internship placements, though Bai denied selling internships or exploiting the students and faced no formal charges. The program, which purported to be a cultural exchange initiative between China and Hawaii, also raised concerns among lawmakers about the treatment of the interns, who were believed to have lived in overcrowded and poor conditions during their two-week stays. LoPresti recalled an incident involving a distressed intern who caused a scene at the state Capitol.

Since the internship controversy, Bai has shifted his focus toward business, veterans affairs, and fertility sectors. He has participated in various industry events, podcasts, and written opinion pieces for business publications. In 2024, Bai was inducted into the Veterans Fellowship Program at the Hoover Institution, a conservative think tank affiliated with Stanford University and led since 2020 by former Secretary of State Condoleezza Rice. Details about Bai’s policy work during his fellowship remain unclear, as the institution did not respond to inquiries.

The broader context includes heightened scrutiny of surrogacy practices involving Chinese nationals. A notable case involved a couple in California, Guojun Xuan and Silvia Zhang, who were accused of harboring at least 26 children born via surrogacy in their residence. The couple operated a surrogacy business out of their Arcadia home. Bai’s organization, Patriot Conceptions, has stated it has no connection to this case.

Additionally, investigations earlier this year highlighted the use of the Northern Mariana Islands as a birth tourism destination by thousands of Chinese women. Many paid up to $45,000 to give birth there, securing automatic U.S. citizenship for their children through a legal loophole. Estimates suggest that approximately 1.5 million such American-born children are being raised in China, a development with potential implications for future U.S. immigration and citizenship patterns.