Home Happening Now Biden Admin Unveils Rule That Jeopardizes Chinese Communist-Linked Battery Projects in U.S. Heartland

Biden Admin Unveils Rule That Jeopardizes Chinese Communist-Linked Battery Projects in U.S. Heartland

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Biden Admin Unveils Rule That Jeopardizes Chinese Communist-Linked Battery Projects in U.S. Heartland

The US government will impose new restrictions that would limit two battery companies with ties to China from pursuing their plan to build plants next to military installations, the Treasury Department announced on Monday.

The Department of Finance issued a new one proposal Monday to expand the ability of the Committee on Foreign Investment in the US (CFIUS) to prevent certain foreign-linked companies from buying land near US military installations inside the country. The proposed rule would wall off both Cnano USA and joy Inc., two separate subsidiaries of China-based companies that planned to buy land and build plants near military installations in Michigan, Illinois and Kansas.

Gotion Inc., which is a “complementary and controlled” subsidiary of Gotion High-Tech, based in China and linked to the Chinese Communist Party (CCP), planned build a battery manufacturing plant approximately 90 miles from Michigan's Camp Grayling, the nation's largest National Guard training facility. too expected to build a plant in Illinois approximately 30 miles from an Army Reserve base and 15 miles from a National Guard installation.

Gotion High Tech maintains an internal CCP committee and as of 2022 employed 900 CCP members, including the company's general manager Li Zhen, seconds in the company's 2022 ESG report.

“The company will establish a Party organization and carry out Party activities in accordance with the Constitution of the Communist Party of China. The company must ensure the necessary conditions for carrying out Party activities. reads Gotion High-Tech “Partnership Articles”.

At Daily Caller News Foundation research previously discovered that a senior executive at Gotion Inc. attended several meetings with CCP members in China, although the company's vice president claimed he had no ties to the Communist Party.

Previously, Democratic Michigan Governor Gretchen Whitmer they boasted that the new plant of Gotion Inc. it would bring an economic windfall and promote the state as a “global hub for mobility and electrification.” Michigan's Democratic lawmakers had approved $175 million in state grants for Gotion to build its new multibillion-dollar plant, along with a number of tax breaks.

Gotion Inc. also received $536 million in state grants to build its plant and additional tax breaks for hundreds of millions of additional dollars, said the office of Democratic Gov. JB Pritzker, who originally announced the partnership of the been with the company. in a statement in September

The new Treasury rule would allow CFIUS to prevent Gotion Inc. build your new plants.

“I welcome the Treasury Department's addition of more than fifty military facilities that will be covered by CFIUS regulations,” said Chinese Communist Party Select Committee Chairman Rep. John Moolenar, R-Michigan. statement this week. “This is also another sign that state and local leaders should also withdraw their support for Gotion.”

The second Chinese-linked company affected by the Treasury's proposed rules is Cnano USA, which expected to build an expansive battery manufacturing facility in Kansas approximately 70 miles from Whiteman Air Force Base (AFB).

Cnano USA is wholly owned subsidiary of C-Nano Technology Co., Ltd., which is owned by the Chinese company Cnano Jiangsu Technology Co., Ltd (Cnano Jiangsu), seconds in the 2022 annual report of Cnano Jiangsu. A DCNF investigation previously found that Cnano Jiangsu employs dozens of CCP members, which the executive director of Cnano USA later admitted during a Kansas House committee hearing in March.

The DCNF also previously found that Cnano Jiangsu promotes the ideology of the Communist Party and has participated in the Chinese government's “863 Program”, which US intelligence has conducted. indicated is an initiative that supports the development of the Chinese military and “provides funding and guidance for efforts to clandestinely acquire US technology and sensitive economic information.”

DCNF's investigation found that Cnano Jiangsu's website previously announced that it had “undertaken various national initiatives 893”. The mention of Program 893 was scrubbed of the website without reason in December following the DCNF investigation.

Democratic Kansas Gov. Laura Kelly vetoed a GOP-sponsored bill in May that would have prevented Cnano USA from building its new $95 million plant near the aforementioned military sites. seconds in the Kansas Reflector. The Treasury's only proposed regulation would prevent Cnano from building the plant regardless of Kelly's decision.

Whitmer and Kelly's office did not immediately respond to a request for comment.

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