U.S. lawmakers ask for security check on Chinese battery maker Gotion

The governors of Michigan and Illinois have revealed plans for Gotion to establish electric vehicle (EV) plants in their states, promising thousands of jobs. However, Republican Senator Marco Rubio and GOP representatives from these states have expressed concerns about Gotion’s ties to China’s Communist Party. They have urged the Committee on Foreign Investment in the United States (CFIUS) to review these connections.

The lawmakers emphasized that despite Germany’s Volkswagen AG being a major shareholder of Gotion’s parent company, Gotion High-Tech, China maintained effective control through various individual shareholders, including the company’s founder and his son, who are members of CCP organizations.

Most top shareholders of Gotion High-Tech are linked to Chinese government entities, and the company’s bylaws commit to implementing the major strategic decisions of the party.

Given President Joe Biden’s recognition of electric vehicles and batteries as critical parts of transportation infrastructure, the lawmakers stressed the necessity of triggering a review and potentially divesting Gotion High-Tech, particularly if CCP control is confirmed.

They underlined the importance of not allowing the CCP to control facilities that produce batteries critical for the U.S., especially with significant taxpayer-funded subsidies.

The concerns are part of wider scrutiny regarding the influence of Chinese entities in the U.S. EV and battery industry, with inquiries extending to companies like Tesla and Ford Motor.

By QUATRO Strategies International Inc.

QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Germany looks to add more geothermal into energy mix

German Chancellor Olaf Scholz has underscored the significant potential of deep geothermal energy as a crucial source for heat generation in Germany. The country boasts substantial geothermal reserves, particularly in the realm of “deep” geothermal energy, which involves extracting heat from reservoirs located at depths exceeding 400 meters. While these reserves have largely remained untapped due to a combination of technological, financial, and regulatory challenges, the recent upsurge in energy prices has reignited interest in this renewable energy resource.

EU’s investigation into Chinese EV subsidies navigates unexpected terrain

The European Union’s (EU) investigation into Chinese support for electric vehicles (EVs) has taken an unexpected turn, as China’s expected retaliation against the probe has yet to materialize. This surprising development is attributed to significant pressure on China’s oversupplied…

TotalEnergies alters shipping routes amid Red Sea risks, lengthening Europe journeys

TotalEnergies has ceased sending ships through the southern strait leading to the Red Sea and the Suez Canal for several weeks, lengthening its ships’ journey time to Europe, the French oil major announced on Wednesday. The Bab-el-Mandeb strait at the southern end of the Red Sea…

Stay informed

error: Content is protected !!