Green energy firm approved by Biden has strong connections to Chinese Communist Party.
A California-based Energy Company with Ties to the Chinese Communist Party Receives Green Light for Michigan EV Battery Plant
A California-based energy company that has been given the green light by the Biden administration for an electric vehicle battery plant project in Michigan has raised concerns among national security experts and Republicans due to its significant ties to the Chinese Communist Party (CCP).
Gotion Inc. has announced plans to invest $2.4 billion in two EV battery plants in Big Rapids, Michigan, with the support of Biden’s Committee on Foreign Investment in the United States and Governor Gretchen Whitmer (D-MI). However, the project has faced scrutiny over allegations that Gotion is potentially an influence operation by the CCP. This suspicion arises from the fact that Gotion High-Tech Power Energy, the parent company and controlling owner of Gotion Inc., is headquartered in Hefei City, China, as revealed in a Foreign Agents Registration Act filing.
Alarming National Security Concerns
Erin Walsh, a former member of the National Security Council under President Donald Trump, expressed her concerns about the situation, stating, “The dichotomy between the interests of the Biden administration and Governor Whitmer versus the protection of the state and our national security is stark. Their unbridled ambition for a green energy transition is not at all grounded in U.S. energy security.”
Republicans have grown increasingly frustrated with the Democratic party’s prioritization of China-linked green energy initiatives over fossil fuels in the fight against climate change. Gotion Inc. has attempted to address criticism of its U.S. operations, with Gotion’s North American manufacturing vice president, Chuck Thelen, dismissing rumors of bringing communism to North America as “fear-mongering.”
CCP Ties and Concerning Revelations
However, Gotion High-Tech’s 2022 Chinese-language ESG report reveals that it established a CCP branch in 2010 and a CCP committee in 2014, as reported by the Daily Caller. The same document also discloses that the Hefei-based firm employs 923 CCP members, including Gotion High-Tech CEO Li Zhen, who is reportedly the party secretary for the company’s committee.
Furthermore, Gotion High-Tech’s “Articles of Association” state that the company must establish a Party organization and carry out Party activities in accordance with the Constitution of the Communist Party of China. The secretary of the Party committee is designated as the chairman.
According to Walsh, Governor Whitmer has prioritized the interests of the CCP over the people of Michigan, a sentiment echoed by Michael Sobolik, a senior Indo-Pacific studies fellow at the American Foreign Policy Council think tank. Sobolik argues that Biden’s Inflation Reduction Act has made the U.S. dependent on China, as it allows companies like Gotion to qualify for tax credits.
Efforts to Address Concerns
Republicans in Congress have attempted to restrict subsidies under the Inflation Reduction Act to Chinese battery companies, as they account for a significant portion of the world’s electric battery production. However, these efforts have not yet been voted on.
Meanwhile, Governor Whitmer has called for a “100% clean energy standard” in Michigan, emphasizing the need to expand domestic energy production from green sources such as solar and wind.
Despite requests for comment, Gotion, Whitmer’s office, and the White House have not responded.
Matthew Seely, head of the Michigan Conservative Coalition, expressed his disappointment, stating, “There’s a lot of great American companies that would have loved the opportunity, the money, and would have brought jobs to our country, while supporting our way of life. Now, we’ve got a company directly tied to the CCP coming into our state.”
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