Gotion Inc. is a Chinese company that manufactures electric vehicle batteries. Courtesy | Facebook
State Rep. Andrew Fink, R-Hillsdale, tried to block funding for a Chinese-owned electric vehicle battery company that plans to build a factory near Big Rapids, Michigan. The company faces local scrutiny due to its board members’ ties to the Chinese government and Chinese Communist Party.
Gotion Inc., a subsidiary of China-based EV battery manufacturer Gotion High-Tech Co. Ltd., plans to begin work on a 408-acre factory in Green Charter Township this summer. The company was planning to build on another 115 acres in Big Rapids Township, but postponed the project after the township’s board of trustees voted in February to seek a federal review of the company.
The plan, called Project Elephant, is set to receive $715 million from Michigan’s government in subsidies and tax breaks, according to the Grand Rapids Business Journal. The state House Appropriations Committee voted March 15 to approve a $585 million package of subsidies to three battery manufacturing projects, including $175 million for Project Elephant.
Fink, a member of the committee, voted against the subsidies.
“There are a lot of red flags here, and it’s certainly cause for more oversight from a security standpoint,” Fink said. “Let’s forget about the fact that this project funding was rushed through the legislative process and is costing Michigan taxpayers far more than the governor initially promised. From a sheer security standpoint, this is concerning.”
Big Rapids Supervisor Bill Stanek said he hopes the company will continue construction in his township after the federal government’s review.
“I think the company would like to have a federal review,” Stanek said. “It gives them an extra document showing that they are not related to the Chinese government.”
Iraq War Veteran and Big Rapids resident Matthew Maczynski said at a township meeting that he opposes the company’s plans due to its Chinese ties.
“The Chinese-owned company is a communist company,” he said, according to Fox News. “China is moving in here and there’s nothing we can do about it.”
Company board members have connections to the CCP, according to shareholder communications compiled by Big Rapids Township. Gotion High Tech CEO Li Zhen was a delegate to the Municipal People’s Congress and to the Provincial Committee of Chinese People’s Political Consultative Conference, a political advisory body for the CCP.
Gotion High Tech Co. rewrote its articles of association in July to reference the party.
“The Company shall set up a Party organization and carry out Party activities in accordance with the Constitution of the Communist Party of China,” reads Article 9 of the document.
Mike Johnston, vice president of governmental affairs for the Michigan Manufacturers Association, said he favors financial incentives to draw investment to Michigan.
“It’s a global economy and if we don’t take advantage of the cutting edge technology that happens to be Chinese, then we’re making a serious error and crippling the future of Michigan for some philosophical reason,” Johnston said. “Everyone has something Chinese in their list of products, most particularly cell phones. They carry around Chinese-made cell phones, and then complain about Chinese investment here in Michigan.”
Fink said he has opposed the subsidies since the idea was first voiced.
“We haven’t done any vetting to ensure this partnership is a wise choice for our state and our nation,” Fink said. “Yet we’re jumping into bed with the CCP.”
