Duval Times

Gotion, Inc., a Chinese company and U.S. subsidiary of Guoxuan High-Tech, announced plans to open a lithium battery plant in Illinois next year. This move has raised concerns among U.S. lawmakers about the company's ties to the Chinese Communist Party (CCP) and its potential impact on national security.

U.S. Senator Marco Rubio (R-FL) and U.S. Representative John Moolenaar (R-MI) have sent a letter to U.S. Secretary of the Treasury Janet Yellen, urging the Committee on Foreign Investment in the United States (CFIUS) to review the ownership of Gotion, Inc. According to Senator Rubio, "The extent of the CCP’s control over Guoxuan is explicitly mentioned in the company’s corporate by-laws, which require the company 'to carry out Party activities in accordance with the Constitution of the [Chinese Communist Party].' In 2021, Guoxuan High-Tech hosted several company retreats where employees were mandated to recite a pledge of loyalty to the Party, including to 'fight for communism.'"

U.S. Representatives Lisa McClain (R-MI), Bill Huizenga (R-MI), Mike Bost (R-IL), and John James (R-MI) have also signed the letter, expressing concerns about the company's recent investments and its potential impact on critical infrastructure. The lawmakers argue that Gotion's ownership by Guoxuan High-Tech, which is affiliated with the CCP, raises national security concerns. They argue that the company's investments effectively give decision-making power to the People's Republic of China (PRC), which goes against U.S. interests.

The lawmakers highlight the complex ownership structure of Guoxuan High-Tech, where the CCP and its members retain effective control through multiple individual shareholders. They point out that the company's corporate by-laws explicitly state the CCP's control and require the company to carry out Party activities. The lawmakers argue that this level of control and influence by the CCP raises concerns, especially considering the Biden Administration's recognition of the PRC as a competitor with the power to reshape the international order.

Senator Rubio and his colleagues urge CFIUS to conduct a closer review of Guoxuan High-Tech's ownership of Gotion, Inc. They argue that allowing the CCP to control facilities that produce critical infrastructure components, such as lithium batteries for electric vehicles, poses a risk to U.S. national security. They also express concerns about providing taxpayer-funded subsidies to a company with ties to the CCP.

The lawmakers conclude their letter by stating, "In the interest of U.S. national security, we respectfully request you conduct an immediate CFIUS review, and if necessary, order the divestment of Gotion, Inc by Guoxuan High-Tech and its CCP owners."

For the full text of the letter, click here.

For more information, visit:

• Reuters: China's Gotion to Set Up $2 Billion Lithium Battery Plant in Illinois