Will the Chinese flag fly over a Chinese EV battery plant in Michigan? You make the call. This article first was posted on Breitbart.
The Michigan community of Green Charter Township on Friday lost a court battle to block Chinese-linked electric vehicle (EV) battery manufacturer Gotion Inc. from building a factory near the town.
Michigan is generally friendly to Chinese investments and the Gotion project in Green Charter Township was specifically endorsed by Gov. Gretchen Whitmer (D), who called it “the biggest ever economic development project in Northern Michigan.”
Gov. Gretchen Whitmer (D-MI) delivers remarks at the SelectUSA Investment Summit on May 04, 2023, in National Harbor, Maryland. (Kevin Dietsch/Getty Images)
Gotion pledged to spend $2.36 billion on the factory, which is supposed to create 2,350 jobs. The company settled on Green Charter Township, a rural community northwest of Detroit that acts as a self-governing district of Big Rapids, as the location for its battery plant. The township signed a development agreement with Gotion in August 2023.
Sentiment among the township’s residents soon turned against the factory project, in part because Gotion Inc. is a U.S. company that is wholly owned and controlled by a Chinese firm called Hefei Gotion High-Tech Power Energy Co. Ltd.
Gotion Inc. was obliged to describe this relationship in detail in its filings under the Foreign Agent Registration Act (FARA). In those filings, and in subsequent statements by Vice President of North American Manufacturing Chuck Thelen, the company has denied being controlled by agents of the Chinese government and insisted the Chinese Communist Party will not have offices in its proposed Michigan factory.
Gotion Inc.’s planned $2.4 billion EV battery plant is to be built near Big Rapids. (Gotion, Inc.)
However, skeptical politicians and reporters in Michigan uncovered Gotion corporate documents that said the company is required to “set up a Communist Party of China organization” and ensure the implementation of Communist Party guidelines within all corporate operations. Investigative journalists discovered Hefei Gotion High-Tech employs hundreds of Chinese Communist Party members, and its CEO is a high-ranking Party official.
Thelen insisted these company documents were misunderstood or misrepresented by critics and their practical meaning was simply that the American subsidiary of Gotion was not allowed to do business in China. Somewhat awkwardly for the American branch and its CEO, Chinese state media enthusiastically celebrated the Gotion plant as a major step toward the Communist regime’s worldwide domination of the EV industry.
A controversy erupted over whether Gotion had misrepresented its relationship with the Chinese government or not, especially since the new factory would be located within a hundred miles of Camp Grayling, the largest U.S. National Guard training facility. Concerns were also raised about the plant’s compliance with wetlands regulations, and the heavy water use anticipated for large-scale battery manufacturing.
The Gotion project received the blessing of the U.S. Treasury Department Committee on Foreign Investment in the United States (CFIUS), but that only added fuel to the controversy, as critics claimed CFIUS was derelict in its oversight duties, allowing the Gotion project to pass without full transparency by declaring the company was operating outside of its jurisdiction.
