Kankakee Times

Illinois politicians and members of the House Select Committee on the Chinese Communist Party have raised concerns about the sizeable subsidies being granted to the Chinese electric vehicle battery maker, Gotion.

Gotion is linked to the Chinese Communist Party (CCP) and aims to build a $2 billion plant in Illinois while receiving $7.5 billion in federal tax credits, asserting that the U.S. government should not support CCP-backed companies expanding into key sectors like lithium-ion battery manufacturing.

This situation raises concerns about U.S. economic and national security and calls for changes in the legislation that created the 45X tax credit program, which led to generous handouts for battery factory projects, including Gotion’s.

Gov. J.B. Pritzker | JB Pritzker / Facebook

“It’s unconscionable that the State of Illinois would contribute $500 million and the federal government an additional $7.5 billion to construct a project that will cost just a fraction of that,” Coalition for a Prosperous America Chairman Zach Mottl told Wirepoints.

“And to give that money to a Chinese company that is already subsidized by the Chinese government is a serious mistake. China’s goal is to dominate the global battery industry, and forcing American taxpayers to unwittingly fund the CCP’s ambitions is a direct threat to U.S. economic and national security.”

The deal was recently announced by the Office of the Illinois Governor.

“Energy and environmental protection are our common challenges. To address them, solar power, wind, and energy storage systems are becoming the backbone of a new energy system and accelerate the revolution in the global energy landscape,” Li Zhen, Chairman of Gotion High-tech, said in a press release from the State of Illinois.

“All that we see here [in Illinois] are of enormous value to us: an enabling business environment, a supportive state government for the new energy industry and their highly efficient work, as well as the prospects of the State of Illinois in the coming years. When we come to Illinois, we are not building a new factory but are planning to reuse an existing one and bring it back to life again as our way of cherishing and conserving resources. We believe that Gotion’s battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the U.S.”

Gov. J.B Pritzker said the deal was the largest investment in Illinois in decades.

“Today, we take another leap forward, announcing the largest electric vehicle battery production investment in Illinois to date. It’s my pleasure to welcome a world-leading battery manufacturer — Gotion — to Illinois,” Pritzker said.

“This announcement is a testament to Illinois status as a leading destination for companies and investors who want the most talented workers, the best transportation systems, and a collaborative economic growth mindset from their partners in government at all levels. With 2,600 new jobs, a $2 billion gigafactory, and the most significant new manufacturing investment in Illinois in decades — it’s the most recent proof that we are in a new paradigm. Illinois is on the rise, and we’re open for business.”

The move comes at a time when the FBI has issued public warnings about China stealing American technology.

Senior FBI officials have warned about China’s theft of U.S.-developed artificial intelligence (AI) technology, emphasizing that China and other adversaries are targeting American businesses, universities, and government research facilities to acquire cutting-edge AI research and products, according to the Voice of America.

FBI Director Christopher Wray highlighted China’s AI ambitions at a cybersecurity summit, stating that they have “used the fruits of their widespread hacking to power, with AI, even more powerful hacking efforts.”

The FBI is concerned not only about the theft of AI technology but also about foreign adversaries exploiting it for future threats, such as the 2024 presidential election, with cybercriminals already using AI for various malicious purposes, including creating convincing phishing emails and carrying out insider trading.

On the national defense front, the Wall Street Journal recently reported the phenomenon of Chinese “gate crashers.”

Chinese nationals, often posing as tourists, have gained unauthorized access to U.S. military bases and other sensitive sites about 100 times in recent years, raising espionage concerns, according to U.S. officials.

These incidents, seen as a form of espionage, are believed to be orchestrated to test security measures at U.S. installations, and individuals involved are typically Chinese nationals reporting to their government, all amid growing tensions between the U.S. and China.