Republican lawmakers are pressing the US Treasury department regarding the expansion of Gotion, a chinese electric vehicle (EV) battery maker, near a US military base.
Gotion has stirred controversy regarding alleged ties to the Chinese Communist Party (CCP) and its cooperation with the Chinese military.
Since 2023, Gotion has been constructing an over $2 billion EV battery manufacturing plant in City, Michigan near Camp Grayling Joint Maneuver Training Center.
Federal regulations limit foreign entities’ business operations within a 100-mile radius of US military bases.
The Committee on Foreign Investment in the United States (CFIUS) is tasked with investigating and regulating such entities.
Thus, US lawmakers have warily observed Gotion’s new plant’s development given it is less than 60 miles south of Camp Grayling, awaiting CFIUS action.
However, there has been no CFIUS investigation into Gotion.
Thus, some conservative lawmakers have written to the Treasury Department, which oversees CFIUS, demanding answers on the latter’s inaction vis-a-vis Gotion.
Senator Marco Rubio (R-FL), alongside U.S. Representative John Moolenaar (R-MI), and other conservative representatives sent a letter to U.S. Department of Treasury Secretary Janet Yellen questioning CFIUS’s decision-making and urging an update of the committee’s rules.
“We write to express our deep concern regarding the U.S. Department of the Treasury’s apparent failure to block Gotion Incorporated (Gotion)—an entity with deep ties to the Chinese Communist Party (CCP),” reads the letter.
The lawmakers continue, complaining about the lack of oversight and demanding CFIUS review Gotion’s activities.
Gotion has also raised controversy due to accusations of employing forced labor to lower prices.
According to CCP media, Gotion officials reject such accusations.
"Gotion High-Tech has consistently upheld the values of respecting human rights and protecting employee rights," Gotion said in a statement. "Our selection of partners is also based on a rigorous audit mechanism and evaluation standards."
Rubio has proposed the US restrict its trade partnerships with China and supports increasing tariffs on Chinese goods.
Recently, Rubio sent a letter to Secretary of Defense Lloyd Austin urging the latter to prevent Chinese battery company Contemporary Amperex Technology Limited (CATL) from doing business with the US military and defense contractors.
Rubio cited CATL’s extensive cooperation with China’s military, the People’s Liberation Army (PLA), as grounds meriting Secretary Lloyd’s blacklisting of CATL.
