MECOSTA COUNTY, Mich. (Michigan News Source) – In an unexpected twist, Gotion, Inc., the company planning a $2.4 billion battery component plant in Mecosta County, has admitted to receiving partial subsidies from the Chinese government.
This admission came through an amended Foreign Agents Registration Act (FARA) filing on July 20th, correcting previous denials of such ties. Last August, Gotion Vice President of North America Manufacturing Chuck Thelen vehemently denied any connection to the Chinese Communist Party (CCP), dismissing concerns as baseless fears and telling Politico that the Chinese Communist Party has no presence in the North American company
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However, the recently amended FARA filing states that Gotion is “partially subsidized through government funding applied by the People’s Republic of China.”
Political and environmental backlash.
Gotion’s plans to move ahead with their megasite have sparked significant opposition from the Mecosta County community for many different reasons including environmental concerns, water issues, security issues and more. It’s also sparked concern from Congressman John Moolenaar, who chairs the House Select Committee on China. Moolenaar and others have raised alarms over Gotion’s ties to the CCP and potential security risks due to the plant’s proximity to Michigan’s Air National Guard base and a cybersecurity center in Big Rapids.
A July press release from Moolenaar also discusses a new proposed CFIUS (Committee on Foreign Investment in the United States) rule out of the Department of Treasury that could subject the Gotion deal to review since it’s within 100 miles of Camp Grayling. Moolenaar says, “I welcome the Department of the Treasury’s addition of over fifty military installations to be covered under CFIUS regulations. Treasury’s first move under this expanded authority should be to deny the land purchase by CCP-backed firm Gotion, which is within 100 miles of the newly added Camp Grayling.”
Moolenaar went on to say, “This is also another sign that state and local leaders should withdraw their support for Gotion as well. While Treasury’s announcement is a good step, this new regulation still allows foreign adversaries to purchase American land without mandatory national security vetting, continuing to leave our military facilities susceptible to surveillance. Congress needs to close this gaping loophole to protect American national security.”
In addition to Moolenaar, former ambassadors Joseph Cella and Pete Hoekstra, have called for Gotion to be blacklisted, highlighting security concerns and the company’s alleged involvement in human rights abuses, including the use of slave labor. They urge federal officials to scrutinize Gotion’s CCP ties more closely, reflecting broader apprehensions about Chinese investments in critical U.S. infrastructure.
A response from Gotion.
Michigan News Source reached out to Thelen about the updated FARA filing. Gotion Inc. spokesperson John Whetstone of Truscott Rossman did not have a response to that issue but said that Thelen had a statement on the proposed CFUIS rule change.
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In his statement, Thelen said, “Gotion Inc. voluntarily submitted all the necessary documents to the U.S. Department of Treasury Committee on Foreign Investment in the U.S. last year, and CFIUS ruled that our proposed land purchase was not a covered transaction. Gotion then purchased the property and is now actively moving forward with all the necessary site preparation and permitting processes.”
Thelen continued, “It is our understanding the Department of Treasury’s proposed rule change would not be retroactive, and only apply to new land purchase proposals. Gotion continues to welcome and encourage any additional CFIUS reviews if it does decide to purchase additional property in the future. We remain transparent, accountable and excited about our proposed battery components facility in Green Charter Township, and will continue to comply with all laws and regulations in the countries where we do business.”
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