State Sen. Lana Theis, R-Brighton, is one of five Republican lawmakers who sent an urgent request Tuesday to Michigan’s Congressional delegation to investigate Gotion High-Tech Co., Ltd, whose subsidiary, Gotion Inc., is being considered for taxpayer funding to support a battery manufacturing plant in Big Rapids.
In the letter, Theis and fellow Sens. Ed McBroom, Joe Bellino, Dan Lauwers, and Kevin Daley to Michigan’s Congressional representatives: “We are writing to urge you to use all federal resources available to immediately investigate whether Gotion High-tech Co., Ltd., as registered on the Swiss Stock Exchange, has ties or contracts with foreign countries that have an adversarial relationship with the United States of America,” the Republican senators wrote. “In light of the time sensitivity of this matter, we kindly request that you work to take swift action. Your prompt attention to this issue is greatly appreciated, and we look forward to hearing from you soon.”
Earlier this month, it was reported that Peter Hoekstra, the former U.S. Ambassador to the Netherlands, said Michigan Economic Development Corporation (MEDC) CEO Quentin Messer Jr. and any other state executive or legislative official involved in negotiating the tentative deal to bring battery manufacturer Gotion to Big Rapids may be running afoul of federal law.
Hoekstra suggests Messer and others who signed a non-disclosure agreement with Gotion (written specifically in its Articles of Association) may have skipped a required step by not registering with the U.S. Department of Justice and publicly disclosing any lobbying activity with “foreign principals” related to financial compensation. Gotion is associated with the Chinese Communist Party (CCP).
Hoekstra and Joseph Cella, the former U.S. Ambassador to Fiji asked in a letter sent in early April that the Assistant Attorney General for National Security investigate the situation and whether the non-disclosure agreement was proper.
“The engagements by Gotion is the latest attempt of subnational incursions of the United State by the PRC [People’s Republic of China] and CCP,” Hoekstra and Cella wrote. “State and local governments cannot be sovereign entities when it comes to our national security, particularly considering the specific direction from our intelligence agencies who recommend against even signing such agreements.”
That letter came after U.S. Rep. John Moolenaar (R-Midland) penned a letter to The Detroit News about his opposition to the company with such loyalty to the Chinese Communist Party being allowed to take advantage of taxpayer dollars.
He said he’s asked the Committee on Foreign Investment in the United States if the possible battery plant in Mecosta County would be a security risk.
According to testimony at the House Appropriations Committee in March, the Big Rapids project promises 2,350 new jobs, $2.5 billion in investment, and average starting salaries of $45,000. Randy Thelen of the Right Place said as many as 42 other companies could spin off investment from this Gotion plant, which the company hopes to start building on 600 acres close to the local airport and the U.S. 131 interchange by April, May or June of this year.
During the testimony, Chuck Thelen, the vice president of North American manufacturing, tried to ease any China concerns by stressing that Gotion is an international company and that Volkswagen owns most of the shares in the company.
MEDC spokesperson Otie McKinley said the agency takes “very seriously its responsibility to accelerate the inclusive growth of the state’s economy on both peninsulas.”
“While we are reviewing the letter’s contents, we will continue to aggressively tell Michigan’s story, aid in the development of small business, revitalize community development and out-hustle and out-compete to win transformational projects in NW Michigan and statewide,” he said.
The House Appropriations Committee has already signed off on a $120 million performance-based grant.
The Senate Appropriations Committee has the final say on that expenditure. It held a hearing March 22, but did not vote at that time.
An $846 million appropriation was made into the Strategic Outreach and Attraction Fund (SOAR) Fund for the project in 2022.
