Investigations into the finances of U.S. zoos have revealed significant discrepancies and murky financial practices in the funds allocated for panda conservation in China. With an estimated $86 million funneled from American zoos to China over the years, concerns are mounting about where this money is actually going.

American zoos, which rely heavily on pandas to draw crowds, merchandise sales, and media attention, are permitted to house these vulnerable species from China only if they can demonstrate that they contribute to panda conservation in the wild. The bulk of this financial support is directed to two Chinese government organizations tasked with preserving panda habitats.

However, a detailed investigation uncovered that U.S. zoos often lack clear records of how their funds are being spent. Instances were found where financial support was directed toward buying patrol vehicles and protective equipment for land conservation. Yet, there were also concerning allocations for apartment buildings, computers, and museums in China, as well as support for Chinese zoos, raising questions about the direct impact on panda conservation.

Despite these irregularities, this practice has been ongoing for decades without public disclosure. The Fish and Wildlife Service, which is supposed to regulate these payments, has frozen the funds at least three times due to insufficient financial documentation. Rather than tightening their oversight, the agency has repeatedly opted to relax its regulations.

Under the Endangered Species Act, U.S. zoos, circuses, and even hunting farms are allowed to transport, and in some cases, euthanize at-risk species, contingent upon their financial pledge to conservation efforts. Some animal rights groups have criticized these payments, asserting that they undermine the spirit of the law by creating a "pay to play" system. Zoos defend their practices by citing improvements in habitat conservation, research, breeding, and education as direct outcomes of their financial contributions.

The U.S. Fish and Wildlife Service has attempted to track the expenditure of these payments, even sending officials to China for investigative trips. Nevertheless, a key visit to Beijing in 2010 resulted in a decision to further loosen oversight, a policy that remains in place today.

Critics argue that this leniency indicates an overly close relationship between the agency and the zoos. Notably, the regulator who headed the 2010 discussions in Beijing is now the head of the American zoo industry association. Wildlife biologist D.J. Schubert of the Animal Welfare Institute remarked, "If the Chinese government is not able to meet those standards, then there shouldn't be a giant panda trade."

The Fish and Wildlife Service maintains that payments under the Endangered Species Act are crucial tools for conservation, emphasizing their commitment to upholding the law. Nonetheless, the Memphis Zoo, which housed pandas until 2023, acknowledged its limited control over the finances sent to China, highlighting persisting issues in the transparency and efficacy of these conservation efforts.