The Chinese Communist Party's Secret Projects in the US: What Is Going On?
by Pete Hoekstra • April 27, 2023 at 5:00 am
Two Chinese companies, Gotion and CATL, are on the verge of building two new battery manufacturing facilities in Michigan. These companies were lured by billions in state and local tax incentives and infrastructure investments, and the environmental requirements buried in the Inflation Reduction Act of 2022.
[T]he state of Michigan is making a big bet on electric vehicle (EV) technology in concert with the Chinese Communist Party. What could go wrong?
The answer to that is simple: Plenty. At a time when bipartisan members of Congress on the Select Committee on the CCP are conducting war games simulating a U.S. response to a Chinese invasion of Taiwan, one has to ask is this the right moment to seek more Chinese investment in the state. Especially when one of those projects is just 100 miles from where the U.S. is training Taiwanese troops to defend against a Chinese Communist invasion.
Already, Virginia, home to numerous military and intelligence facilities, has rejected one of the two projects out of national security concerns.
As... outlined in the unprecedented joint news conference by the FBI and MI-5, the threat from the Chinese Communist Party is real, dangerous and pervasive.
Another red flag is the secrecy shrouding the projects. Although the state is in the process of providing substantial sums in taxpayer money to private entities, many of the details have been covered by Non-Disclosure Agreements (NDAs). Members of Congress, state legislators, local elected officials, and state and congressional staff have been forced to sign NDAs so they can access information taxpayers and the media have been prevented from seeing. What is so secret that it requires taxpayers to be shielded from information about the projects that their dollars will fund? Local newspapers have requested information through Freedom of Information Act requests, but they have been denied.
Not only are the projects shrouded in a veil of secrecy, there are legitimate concerns about various organizations actually adhering to the Foreign Agents Reporting Act (FARA). This act requires individuals working on behalf of a foreign entity to register their activities with the Justice.... Former Ambassador Joe Cella and I have... have jointly submitted a request to the Justice Department to review specific individuals and their compliance with federal disclosure laws.
[N]ow is the time for both battery projects to be paused. It is time for legislators to engage in their fiduciary responsibility, recognize the changed environment, and reevaluate plans to spend taxpayer dollars to fund two Chinese companies, the CCP, and potentially even the Taliban and the re-emerging Islamic State. It is a new day and US taxpayer money should not be backing potential adversaries.
In 2018, the Michigan Economic Development Corporation (MEDC) celebrated "Michigan-China Week" to highlight the growing economic ties between Michigan and China. At the time, Michigan already had more than 300 Chinese companies located in the state, with more than $4 billion in investment, supporting roughly 6,000 jobs. MEDC wanted to publicize this story in its bureaucratic hopes that more Chinese businesses would follow.
Michigan may be reaping the fruits of this engagement in the coming months as more Chinese money and workers are set to come to the state. Two Chinese companies, Gotion and Contemporary Amperex Technology Co Ltd (CATL), are on the verge of building two new battery manufacturing facilities in Michigan. These companies were lured by billions in state and local tax incentives and infrastructure investments, and the environmental requirements buried in the Inflation Reduction Act of 2022.
