Biden Administration Allows Chinese Battery Plant Near Military Base

August 22, 2024 – The Biden-Harris administration's proposed national security regulations have raised concerns regarding Gotion High-Tech, a Chinese company linked to the government, which is developing an electric vehicle battery facility near a sensitive military site in northern Michigan. The new rules would allow federal officials to scrutinize foreign transactions within 100 miles of over 50 military installations, including Camp Grayling, which is located just 63 miles from Gotion's proposed site. Critics argue that the exemption granted to Gotion undermines the intent of the regulations. The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments for national security risks, previously assessed Gotion's transaction and concluded it did not constitute a covered real estate deal. Former U.S. ambassadors Joseph Cella and Peter Hoekstra expressed their concerns, highlighting the inconsistency of including Camp Grayling in the scrutiny list while exempting Gotion from further vetting. Despite bipartisan apprehension regarding Gotion's ties to the Chinese Communist Party (CCP), Michigan Governor Gretchen Whitmer has supported the project, allocating substantial subsidies. Reports have surfaced about Gotion employees participating in trips to CCP memorials, raising alarms among national security experts and lawmakers. Gotion's vice president, Chuck Thelen, defended the company's actions, stating that they complied with all necessary regulations and welcomed further reviews if they pursue additional property. Cella and Hoekstra urged the Treasury Department to retroactively apply the proposed rules to Gotion and similar entities, emphasizing the need for a unified government response to the perceived threat from China.