Congressman John R. Moolenaar | Rep. John R. Moolenaar Official U.S House Headshot
Congressman John R. Moolenaar | Rep. John R. Moolenaar Official U.S House Headshot
Members of Congress, Congressman John Moolenaar and U.S. Senator Marco Rubio (R-FL), have sent a letter to U.S. Treasury Secretary Janet Yellen urging her and the Committee on Foreign Investment in the United States (CFIUS) to review the ownership of Gotion Inc., a wholly-owned subsidiary of Gotion High-Tech, which is controlled by the Chinese Communist Party (CCP).
The lawmakers are concerned about the Foreign Investment Risk Review Modernization Act, which prohibits foreign ownership over the supply of critical infrastructure. President Joe Biden has identified lithium batteries as critical infrastructure, making the lawmakers urge a review of Gotion's ownership.
Congressman Moolenaar and Senator Rubio state in their letter:
"It is our understanding that CFIUS determined that Gotion’s purchase of 400 acres in Michigan to build a battery plant is not a covered transaction. Regardless if CFIUS reviewed this transaction, we urge you to review Guoxuan High-Tech’s ownership of Gotion Inc. to determine whether or not such ownership is covered by Section 1703 of the Foreign Investment Risk Review Modernization Act (FIRRMA), which requires CFIUS to review investments that afford a foreign person “the management, operation, manufacture, or supply of critical infrastructure.” President Biden has identified electric vehicles and the lithium batteries that power them as critical parts of America’s transportation infrastructure. It is not in the interest of the United States to allow the CCP to control facilities estimated to produce thousands of those batteries, much less to provide it with hundreds of millions of dollars in taxpayer funded subsidies to do so."Earlier this year, Congressman Moolenaar urged Gotion Inc's American and European partners to break away from its CCP-controlled parent and seek new partners for its investments in America.
The full text of the letter can be found here.
U.S. Representatives Lisa McClain (R-MI), Bill Huizenga (R-MI), Mike Bost (R-IL), and John James (R-MI) also signed the letter.
Gotion Inc., a subsidiary of Gotion High-Tech, has made recent investments in lithium battery manufacturing plants in Michigan and Illinois. Given the owners' membership and affiliation with the CCP, the lawmakers believe that CFIUS should conduct a rigorous review of Gotion's ownership. The investments effectively give the CCP control over the management, operation, manufacture, and supply of critical infrastructure in the United States.
The lawmakers highlight that although Germany's Volkswagen AG is the largest single shareholder of Guoxuan High-Tech, owning 30 percent of the company, the CCP and its members retain effective control through multiple individual shareholders. The complex ownership structure obscures the CCP's influence over Guoxuan and Gotion.
Congressman Moolenaar and Senator Rubio emphasize the importance of CFIUS reviewing Guoxuan High-Tech's ownership of Gotion Inc. under Section 1703 of FIRRMA. They argue that allowing the CCP to control facilities that produce lithium batteries, critical to America's transportation infrastructure, is not in the interest of the United States.
The lawmakers request an immediate CFIUS review and, if necessary, the divestment of Gotion, Inc by Guoxuan High-Tech and its CCP owners to safeguard U.S. national security.
For more information, please visit:
Detroit News: Moolenaar - Gotion Proposal is Wrong for Michigan
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