LANSING, Mich. (Michigan News Source) – An alteration to a Michigan Senate Bill which would have increased transparency and security protocols the Michigan Economic Development Corporation (MEDC) was removed last minute, prompting concern by some former United States Ambassadors. 

“Overnight, at the request of Governor Gretchen Whitmer and the MEDC, a substitute to Senate Bill 559 stripped out national security provisions for future deal applicants, and then on a party line vote in committee, rejected the amendment to restore the provision,” said Former Ambassadors Joseph Cella and Pete Hoekstra. 

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In an email to Michigan New Source, they included the language that was removed from the substitute: An internal assessment by MEDC/Strategic Outreach and Attraction Reserve (SOAR); if MEDC/SOAR were to ascertain a national security threat, the most basic of Committee on Foreign Investment in the United States (CFIUS) filings would be required; Screening whether a foreign person the partnership is on the entity list published by the U.S. Department of Commerce’s Bureau of Industry and Security.

The former ambassadors also expressed their concerns for the rushed projects by Michigan Governor Gretchen Whitmer and Illinois Governor J.B. Pritzker. 

“In the face of all the geopolitical instability, Whitmer and Pritzker remain all-in with their PRC-based and CCP-tied “deals” with CATL and Gotion, and have just seen their risk profile increase since the horrifying attacks and ensuing war in Israel. How?” they expressed in an opinion piece for the Detroit News. 

They also brought attention to the other prominent Michigan Electric Vehicle project, Ford BlueOval Battery Park plant, which had its operations suspended fearing viability by the Detroit Automaker amidst concerns with the business relationship with Chinese company, Contemporary Amperex Technology, Co. Limited (CATL). 

“Recall that the business deals cut by Ford and CATL and Gotion were controversial — not simply because of their ties to China and the Chinese Communist Party, but because of the lack of de-risking and due diligence on the part of Whitmer and the Michigan Economic Development Corporation (MEDC),” the ambassador said in the piece. 

The former Ambassadors expressed their dissatisfaction with the main bill sponsor, State Senator Mallory McMorrow (D-Royal Oak). 

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“What’s clear is all of us share a deep commitment to protecting Michiganders, to protecting our country, and this is an area where we have taken on significant work to move these bills forward in a way that with our state departments and our partners is a solution we know the state can administer and enforce, which is a tricky balance to find,” Sen. McMorrow said. 

The MEDC supported company Gotion, came under criticism from the bipartisan U.S. Select Committee on the Chinese Communist Party, as did Governor Gretchen Whitmer who lauded the new jobs that the Gotion and Ford BlueOval Projects would bring to the state. 

“These new battery plants will be game changers: supporting thousands of families, uplifting local businesses, and ensuring our cities and towns thrive for decades to come,” Gov. Whitmer said, “They’ll help Michigan go toe to toe with China, bringing critical parts of the auto supply chain home. We must reduce our reliance on Chinese products, which have caused work stoppages, shortages, and car price hikes over the last few years.”  

There have been repeated efforts to obtain transparency on the BlueOval project including from the United States Committee and Representatives including a letter from this September. 

“While we are encouraged to see Ford take a small first step in reevaluating its deal with CATL, we are concerned that Ford has not been fully transparent with our requests for documents and information,” the letter said. 

In September, Illinois Governor Jay Robert Pritzker celebrated the state’s investment in a new $2 billion Gotion lithium battery plant in Manteno, which came with the promise of 2,600 jobs. 

“In partnership with the business community and the General Assembly, two years ago we set out to make Illinois a destination for electric vehicle and clean energy companies from across the globe. With the right incentives, nation-leading infrastructure, world-class workforce, and booming clean energy production, we have transformed ourselves into an attractive location for global manufacturers,” said Governor Pritzker. “Today, we take another leap forward. It’s my pleasure to welcome Gotion to Illinois and to show the world yet again that Illinois is ready to be a player on the world stage.”

The former ambassadors vowed to “keep fighting against the Ford-CATL and Gotion deals until they are no more.”