{"id":2033591,"date":"2023-09-15T15:52:13","date_gmt":"2023-09-15T19:52:13","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-house-panel-probes-treasury-over-federal-tax-credits-for-chinese-companies\/"},"modified":"2023-09-15T15:57:31","modified_gmt":"2023-09-15T19:57:31","slug":"us-house-panel-probes-treasury-over-federal-tax-credits-for-chinese-companies","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-house-panel-probes-treasury-over-federal-tax-credits-for-chinese-companies\/","title":{"rendered":"US House Panel Investigates Treasury&#8217;s Tax Credits for Chinese Firms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-house-panel-probes-treasury-over-federal-tax-credits-for-chinese-companies%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2033591&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>A U.S. House\u200d panel on\u200c China has reached out to the Department \u2062of Treasury, seeking \u2062clarification on whether it would support U.S. \u200ctaxpayer funding for a Chinese green\u200b energy\u200c company&#8217;s battery plant in Michigan.<\/p>\n<p>The panel&#8217;s inquiry comes as the Treasury develops guidelines for applying the term &#8220;foreign entity of concern&#8221; to incentives under the Inflation Reduction Act (IRA), a \u200dnew law aimed at reducing\u200d U.S. reliance on China for renewable energy.<\/p>\n<p>The chair and \u200dranking\u200d member of the House Select Committee on\u2064 the Chinese Communist Party\u2064 (CCP) expressed their concerns\u2063 in a letter to the Treasury, stating that \u2064it is puzzling for\u2063 the U.S. government to support CCP-backed companies expanding their presence in the\u200d U.S. market, particularly in critical sectors like lithium-ion \u2062battery manufacturing. They emphasized\u2064 the need to reduce the CCP&#8217;s\u2064 control over <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-marks-20-years-in-world-trade-organization\/\" title=\"China Marks 20 Years in World Trade Organization\">vital supply chains<\/a>.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/us\/trump-urges-united-auto-workers-to-fight-bidens-ev-plan-5491271\">Trump Urges United Auto Workers to \u200dFight Biden&#8217;s EV Plan<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/13\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/us\/trump-urges-united-auto-workers-to-fight-bidens-ev-plan-5491271\"><\/a><\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/us\/chinese-ev-battery-maker-gotion-to-build-2-billion-gigafactory-in-illinois-5488832\">Chinese EV\u200d Battery Maker Gotion to Build $2\u200b Billion Factory in Illinois<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/9\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/us\/chinese-ev-battery-maker-gotion-to-build-2-billion-gigafactory-in-illinois-5488832\"><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>The\u2064 Committee&#8217;s focus is on Gotion High-Tech Co., whose\u2062 U.S. subsidiary Gotion Inc. is constructing a $2.4 \u200bbillion battery\u2064 manufacturing facility in Michigan. The \u200bfacility will begin\u2062 production in \u200cthe second quarter of\u2064 2025 and will have a capacity of producing 30 to\u2064 40 gigawatt-hours of\u2062 battery cells per year. Chuck Thelen, Gotion&#8217;s vice president of North America operations, shared this information at\u200b a local government meeting in April.<\/p>\n<div class=\"my-5\">Gotion is \u2062a leading producer of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-electric-vehicle-supply-chain-includes-human-rights-abusing-countries\/\" title=\"Report: Electric Vehicle Supply Chain Includes Human Rights Abusing Countries\">lithium-iron-phosphate<\/a> (LFP) batteries, which are more affordable \u200cbut\u200d less energy-dense \u200bcompared to the dominant nickel-cobalt-manganese \u2063(NCM) batteries\u200c in the market. \u200cLFP battery technology is\u2062 monopolized by Chinese companies, \u200bwhile nickel-based batteries are championed by Japanese and South Korean companies. <\/p>\n<h2>A Race for \u200cMarket Domination<\/h2>\n<p> South Korea&#8217;s SNE Research ranks Gotion <a href=\"https:\/\/www.sneresearch.com\/en\/insight\/release_view\/86\/page\/0?s_cat=%7C1%7C2%7C3%7C4%7C&#038;s_keyword=Guoxuan#ac_id\" target=\"_blank\" rel=\"noopener\">third<\/a> globally in terms of \u200dmarket\u2062 share for LFP cathode \u200cbattery materials and \u200d <a href=\"https:\/\/www.sneresearch.com\/en\/insight\/release_view\/68\/page\/0\" target=\"_blank\" rel=\"noopener\">eighth<\/a> in \u200cinstalled battery volumes for electric vehicles (EVs). \u2064The \u200dresearch\u2064 firm refers to Gotion as Guoxuan, its Chinese\u2064 name, in\u2064 its \u200dreports.<\/div>\n<div class=\"my-5\">Recently,\u2064 Gotion disclosed a second location in Manteno, Illinois, where \u2062it has invested $2 billion \u200cto manufacture LFP batteries on a 150-acre site.\u2062 This\u200c announcement follows the earlier mention \u2062by Mr. Thelen\u2064 in April.<\/div>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<\/div>\n<p>In February, Ford Motor Co. revealed that it had licensed LFP battery technology from China&#8217;s Contemporary Amperex Technology Co. Ltd. (CATL), \u200dthe \u200bworld&#8217;s \u2062largest EV battery maker. Ford plans\u200d to produce 35\u200b gigawatt-hours of batteries annually, enough for 400,000 EVs, starting in 2026.<\/p>\n<div class=\"my-5\">The adoption of LFP\u2064 batteries by American automakers is crucial \u200bfor LFP technology to dominate the global EV battery \u200bmarket, according to a December <a href=\"https:\/\/www.adamasintel.com\/lfp-for-the-massive-ncm-for-the-majority\/\" target=\"_blank\" rel=\"noopener\">report<\/a> by Adamas Intelligence, \u200ca critical minerals market research firm.<\/div>\n<div class=\"my-5\">The bipartisan panel leaders also called for \u200bthe \u200dTreasury&#8217;s input to expand the jurisdiction of the Committee on Foreign\u2062 Investment \u200bin the United States (CFIUS),\u200b which <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-lawmakers-introduce-bill-to-ban-china-from-buying-u-s-farmland\/\" title=\"Bipartisan Lawmakers Introduce Bill to Ban China from Buying U.S. Farmland\">reviews foreign acquisitions<\/a>\u200b for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-no-new-proactive-step-on-tiktok-deal-under-biden\/\" title=\"White House: No New \u2018Proactive Step\u2019 on TikTok Deal Under Biden\">national security risks<\/a>. They emphasized the need to\u2063 strengthen national security reviews.<\/div>\n<p>CFIUS, under the Treasury&#8217;s leadership, determined that Gotion&#8217;s purchase of land \u200bfor the Michigan battery plant did not fall under its jurisdiction as a &#8220;covered transaction,&#8221; according to an announcement by the company \u2062in June.<\/p>\n<p>In addition to potential federal tax credits, \u200cGotion has received a generous state and local incentive package.<\/p>\n<div class=\"my-5\">In \u200cApril, the state of Michigan approved a $715\u2062 million incentive \u2063package, including a 30-year\u2064 tax break worth $540 million, for Gotion&#8217;s new battery plant, as reported by <a href=\"https:\/\/www.mlive.com\/public-interest\/2023\/04\/michigan-gives-175m-to-gotion-electric-vehicle-project-despite-backlash.html\" target=\"_blank\" rel=\"noopener\">MLive<\/a>.\u200c <\/p>\n<h2>Gotion&#8217;s Link to the CCP<\/h2>\n<p> Gotion&#8217;s connection to the CCP has recently \u200dcome under scrutiny. The Chinese\u2062 parent company&#8217;s <a href=\"https:\/\/www.gotion.com.cn\/investor\/governanceinfos\/119.html\" target=\"_blank\" rel=\"noopener\">article of incorporation<\/a> includes \u2064chapters on establishing a \u2064CCP committee within the\u200b company,\u200b with the Party secretary serving \u200bas the chairman.<\/div>\n<p>During the local government meeting in April, Mr. Thelen stated, &#8220;We do have articles of incorporation that require specific paragraphs, or you don&#8217;t do business in the country of China. Yes, \u200bbut \u200bit is not a corporate culture.&#8221;<\/p>\n<p>However, reports on Gotion&#8217;s Chinese\u200d website\u2062 seem to tell\u2062 a different story.<\/p>\n<div class=\"my-5\">In its\u2064 2022 corporate responsibility <a href=\"https:\/\/www.gotion.com.cn\/news\/societyinfos\/1129.html\" target=\"_blank\" rel=\"noopener\">report<\/a>, \u200cGotion stated\u200b that it\u2062 has 923 CCP members and 11 \u200bchapters dedicated \u2063to \u200cCCP-related activities,\u200d including visits to historical Red Army battlefields and studying \u2064reports of the\u2063 20th National Congress of the CCP.<\/div>\n<div class=\"my-5\">In April, Gotion Inc. was registered as a foreign\u2063 principal under the Foreign Agents\u2064 Registration Act, according to a filing (<a href=\"https:\/\/efile.fara.gov\/docs\/7261-Exhibit-AB-20230421-1.pdf\" target=\"_blank\" rel=\"noopener\">pdf<\/a>) by a law \u200dfirm. \u200cThis raises \u2062further questions about Gotion&#8217;s ties to the \u200dCCP.<\/div>\n<p>When \u2064Gotion announced\u200b the Michigan plant,\u2063 it mentioned collaborating with Ferris State University to develop a \u2063talent pipeline for the 2,360 jobs\u200d it\u2062 plans to create. It also expressed intentions to prioritize hiring within the\u2062 state through Michigan Works.<\/p>\n<p>Regarding \u2062the recruitment progress, \u200bMichigan\u200c Works stated that there is no information to report at this time. The dean of Ferris State&#8217;s\u200b engineering school, at the time of the\u2064 Gotion deal announcement, has left the university. The status \u2063of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-house-panel-probes-treasury-over-federal-tax-credits-for-chinese-companies\/\" title=\"US House Panel Investigates Treasury's Tax Credits for Chinese Firms\">planned educational partnership remains unclear<\/a>. Gotion&#8217;s Mr. \u2064Thelen did \u200dnot respond to inquiries from The Epoch Times.<\/p>\n<p>The Epoch Times has reached out to the Department of Treasury for comment.<\/p>\n<\/div>\n<\/blockquote>\n<p> <\/p>\n<h2> Why do critics argue\u200b that investing in companies tied to \u200dthe CCP poses national security risks<\/h2>\n<p><span>  \u200b Target=&#8221;_blank&#8221; rel=&#8221;noopener&#8221;>website<\/a> states \u200dthat its largest shareholder is\u200c State Grid Corporation of China (SGCC),\u200b a state-owned enterprise and one of the largest utilities\u200b in the world. The SGCC is directly controlled by \u200cthe CCP and plays a key\u200c role in\u200c implementing the party&#8217;s energy policies. <\/div>\n<div class=\"my-5\">Critics argue\u200b that investing in companies tied to \u200bthe \u2063CCP poses\u2064 national security risks. The \u2062CCP has a history of using \u2064economic leverage as a \u200btool for political influence, and supporting CCP-backed companies \u2062could\u2064 potentially give the\u2063 Chinese government access to sensitive technologies and critical infrastructure in the \u200bUnited States.<\/div>\n<div \n\n","protected":false},"excerpt":{"rendered":"<p>The U.S. House panel on China has requested clarification from the Department of Treasury regarding its support for a Chinese green energy company&#8217;s battery plant in Michigan. This inquiry is crucial as the Treasury develops guidelines for applying the term &#8220;foreign entity of concern&#8221; to incentives under the Inflation Reduction Act.<\/p>\n","protected":false},"author":238,"featured_media":2033592,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2033591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2033591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2033591"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2033591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2033592"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2033591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2033591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2033591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}