Ford may receive a subpoena due to its Chinese partnership as Congress increases pressure.
Ford Faces Potential Congressional Subpoena Over Chinese EV Project
Ford Motor Co. is at risk of receiving a congressional subpoena regarding its agreement with a Chinese battery maker for an electric vehicle project in Michigan. House Republican lawmakers accuse the automaker of evading their questions and withholding necessary documents related to the partnership with China’s Contemporary Amperex Technology Co. Ltd. (CATL). The lawmakers have warned Ford of the consequences if it continues to defy their requests.
The committee chairs—Jason Smith, Mike Gallagher, and Cathy McMorris Rodgers—wrote a letter to Ford CEO Jim Farley expressing their dissatisfaction with the company’s response. They demanded that Ford comply with their document requests by a specific deadline, or else face compulsory measures or a public appearance before Congress to explain their non-compliance.
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The planned $3.5 billion electric vehicle (EV) battery facility in Michigan licenses technology from CATL, whose chairman serves on the National Committee of the Chinese People’s Political Consultative Conference, a political advisory body to the Chinese communist regime, which gets advice from communist leader Xi Jinping.
Between April and September, the three committee chairs had sent joint and separate requests to Mr. Farley, asking for a copy of the licensing agreement and all of the automaker’s communications with the Biden administration on the deal’s eligibility for tax credits under the Inflation Reduction Act (IRA).
A Sept. 1 letter by the House Committee on Energy and Commerce stated that the Ford-CATL deal “could aid China’s efforts to expand its control over United States electric vehicle supply chains and jeopardize national security by furthering dependence on China.” Other congressional letters conveyed similar concerns.
Meanwhile, on Sept. 25, Ford said it was pausing the EV battery project, citing commercial competitiveness considerations.
“After months of investigation by the Select Committee on the Chinese Communist Party, we’re encouraged to see Ford take a crucial first step to reevaluate its deal with Chinese Communist Party-aligned EV battery firm CATL,” Mr. Gallagher told The Epoch Times via email on Sept 25.
“CATL’s deep ties to CCP forced labor have no place in the American market and make the company exceptionally unfit to receive American taxpayer dollars,” he added. “Now, Ford needs to call off this deal for good.”
The Coalition for a Prosperous America (CPA) echoed Mr. Gallagher’s comments in a statement.
“Ford should not just pause its deal with CATL—the CCP’s [Chinese Communist Party’s] EV battery company—it should cancel it for good,” said Zach Mottl, chairman of CPA, an advocacy organization that represents domestic manufacturers. Ford isn’t a member of the CPA.
“Chinese companies should have no business qualifying for Inflation Reduction Act tax credits, and it was a serious mistake to pass the Inflation Reduction Act without those guardrails in place,” he added. “The CCP already heavily subsidizes its renewable energy industry, and companies like CATL have deep ties to China’s continued use of forced labor.”
CPA has called on Congress to pass legislation to block Chinese companies from receiving any IRA tax credits. Under the IRA, the consumer tax credit of $7,500 per EV has a clause related to “foreign entities of concern,” whose definition and interpretation still await guidelines from the Department of Treasury. However, the advanced manufacturing credit tied to EV batteries doesn’t have the same clause.
“We’ve answered multiple Congressional letters correcting misinformation about BlueOval Battery Park Michigan and Ford’s efforts to bring manufacturing home to the U.S.,” Ford spokesperson Melissa Miller told The Epoch Times in an emailed statement. “We’ve thoroughly responded to questions and shared detailed information about Ford’s work to strengthen domestic battery manufacturing, creating U.S. jobs and helping America compete and win on the global stage.”
Late last year, Virginia Republican Gov. Glenn Youngkin withdrew the Commonwealth from the bid to host Ford’s EV battery park with CATL. For this, he was criticized by Democrats for missing a significant economic opportunity that would have created 2,500 jobs and was much needed in southern Virginia.
“I have to say I’m not surprised,” Mr. Youngkin said about Ford’s decision to pause its project with CATL at an event in Petersburg, Virginia, earlier today.
“When we really dug into the project, it was clear that it was a Trojan horse setup, with Ford really fronting for a company that is heavily influenced by the Chinese Communist Party. And they were trying to tap into taxpayer money.
“I’m really pleased we made that decision because we didn’t waste money or time like Michigan did on this project that now, as we saw earlier this year, really should not have gone forward.”
The article was updated with comments from Ford and Virginia Gov. Glenn Youngkin.
How does the CCP’s influence over battery maker CATL raise concerns about forced labor in the U.S. electric vehicle supply chains?
The CCP, including possible connections to forced labor.”
According to the lawmakers’ letter, Ford had failed to provide the requested documents and had only provided a written response that the committee chairs deemed insufficient. The lawmakers expressed their concerns over Ford’s lack of transparency and cooperation, stating that it hindered their ability to fulfill their oversight responsibilities.
They also highlighted the potential national security risks associated with the Ford-CATL deal, citing the Chinese communist regime’s influence over the battery maker and its implications for the U.S. electric vehicle supply chains. The lawmakers emphasized the need to reduce dependence on China and ensure the integrity of critical industries.
Furthermore, the committee chairs demanded that Ford comply with their document requests by a specific deadline. They warned of potential compulsory measures, including a congressional subpoena if Ford continued to defy their requests. The lawmakers were prepared to take further action, such as a public appearance before Congress by Ford executives to explain their non-compliance.
In response to the subpoena threat, Ford reiterated its commitment to cooperating with Congress and providing the requested information. The company recognized the importance of oversight and pledged to work towards resolving any outstanding issues with the committee chairs. However, it maintained that it had already provided substantial information and was committed to protecting its confidential and proprietary business information.
The ongoing dispute between Ford and the Republican lawmakers raises questions about the scrutiny of Chinese investments and partnerships in the U.S. auto industry. With the growing competition in the electric vehicle market, concerns over national security and economic competitiveness become increasingly relevant. The outcome of this situation may have significant implications not only for Ford but also for the broader landscape of U.S.-China business relations in the automotive sector and beyond.
The controversy surrounding the Ford-CATL deal highlights the complex intersection of business, politics, and national security, particularly in the context of U.S.-China relations. As the U.S. government seeks to protect its interests and maintain a competitive edge in key industries, it faces the challenge of balancing economic cooperation and security concerns. This case serves as a reminder of the delicate balance that must be struck to navigate the complexities of international business partnerships and safeguard national interests.
Ultimately, the outcome will depend on Ford’s response to the congressional demands and the decisions made by both parties involved. As this situation continues to unfold, it offers insights into the broader dynamics shaping the relationship between the U.S. and China and the evolving landscape of the global automotive industry.
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