Biden cancels $200M grant to Chinese battery maker with ‘Talent Program’ recruit.

Breaking News: Biden Administration Cancels $200 Million Grant to Chinese Battery Maker

The Biden administration has canceled a $200 million grant to lithium battery maker Microvast, following the Washington Free Beacon’s report on the company’s extensive operations in China. This major reversal comes after months of pressure from Republican lawmakers, who cited Microvast’s CEO’s participation in a Chinese government-sponsored talent recruitment program and the company’s operations in China.

The Chinese foreign ministry has expressed its opposition to the White House’s decision, according to the state-controlled Global Times. Microvast’s stock has dropped sharply following the news.

Why Was the Grant Canceled?

• The Department of Energy faced criticism from lawmakers for selecting Microvast for the grant, which was intended to counter China’s dominance over the global battery industry.
• Although Microvast’s corporate headquarters is in Texas, the company operates primarily out of China.
• The company disclosed to shareholders last year that the Chinese government “exerts substantial influence over the manner in which we must conduct our business activities and may intervene, at any time and with no notice.”
• Microvast’s founder and CEO was reportedly recruited to move back to China from the United States in 2000, as part of a Chinese government-sponsored “talent program.”

Sen. John Barrasso (R., Wyo.) welcomed the announcement but questioned why the decision took six months. He called for an overhaul of the grant-making process and due diligence before issuing press releases. House Science, Space, and Technology Committee chairman Frank Lucas (R., Okla.) said the decision was a “win for taxpayers and American businesses,” but added that he was “frustrated that it took the Department six months and multiple letters from our Committee to come to such an obvious conclusion.”

This decision sends a clear message that the Biden administration is committed to protecting American businesses and taxpayers from Chinese influence. Let’s hope that this is just the beginning of a new era of accountability and transparency in government decision-making.

Stay tuned for more updates on this developing story.