Thursday, April 18, 2024


Where your horizon expands every day.


Republican lawmakers in the United States are advocating for a thorough examination of a battery company with ties to China, in the interest of national security.

GOP lawmakers called on the US Treasury Department to perform a security assessment on Gotion Inc, a company with ties to China that intends to construct electric vehicle battery facilities in Michigan and Illinois. They expressed concern that the company’s leadership may be influenced by Beijing.

The recent decision is part of the ongoing efforts of the Republican party to scrutinize EV battery manufacturers with ties to China who are seeking to establish operations in the United States, potentially with financial support from taxpayers.

The governors of Michigan and Illinois have revealed their intentions for Gotion to establish electric vehicle factories in their respective states, which are projected to generate numerous employment opportunities.

Senator Marco Rubio and other Republican members of Congress wrote a letter addressed to Treasury Secretary Janet Yellen, requesting that the Committee on Foreign Investment in the United States (CFIUS) examine Gotion’s connections to the Chinese Communist Party.

The legislators stated that even though Volkswagen AG from Germany holds the largest stake at 30% in Gotion’s parent company, Gotion High-Tech, China still maintains “effective control” through various individual shareholders.

The individuals named in the post are Li Zhen, the founder of the company, and his son, who are both reportedly affiliated with CCP organizations. The majority of Gotion High-Tech’s major shareholders are also tied to Chinese government-related entities, and the company’s bylaws state that it will carry out significant strategic decisions made by the party.

The lawmakers stated that this action should prompt a review and, if needed, the divestment of Gotion High-Tech. This is particularly important since President Joe Biden has designated electric vehicles and batteries as crucial components of transportation infrastructure.

They stated that it is not in the best interest of the US to let the CCP have control over facilities that are expected to produce a large number of batteries, and especially not to give them hundreds of millions of dollars in subsidies funded by taxpayers.

The Treasury Department and Gotion High-Tech did not promptly reply to comment requests from Gotion.

In recent years, China has taken steps to strengthen the influence of the CCP in Chinese companies. It is often mandatory by law for these companies to have a party unit.

The Republican party has also inquired about Tesla’s partnership with Chinese battery maker CATL, citing worries that American subsidies for electric vehicles may be going to foreign companies. They have also been investigating Ford Motor’s proposed $3.5 billion investment in a Michigan battery factory that will utilize technology from CATL.