The Pentagon has listed Chinese electric vehicle battery maker CATL as a Chinese military company. This move is part of an annual update, and it raises concerns about CATL's ties to the Chinese Communist Party while it collaborates with Ford on a billion-dollar electric vehicle project in Michigan. The listing highlights ongoing worries about foreign influences in U. S. business deals related to technology and energy.
The project, which received nearly $2 billion in subsidies and tax breaks from the Michigan government led by Democrat Gretchen Whitmer, has faced scrutiny due to CATL's connections with the Chinese government. Representative John Moolenaar emphasized the necessity of monitoring firms linked to the Chinese military to protect American security. He indicated that these companies pose potential threats to both the economy and national security and reiterated that the Select Committee will keep a watchful eye on such issues.
Ford had announced the factory in February 2023, intending to create jobs and boost battery production, but later downsized due to lower demand for electric vehicles. Although CATL is not a state-owned company, it is backed by Chinese investors connected to the government. The founder of CATL has also been recognized in the Chinese political system, emphasizing the close relationship between the company and the Chinese government.
Former U. S. ambassador Joseph Cella supported the Pentagon's actions, stating that recognizing CATL as a military company is necessary for national security. He criticized Governor Whitmer for not performing adequate due diligence before approving the taxpayer-funded deal with CATL. Cella urged other governors to be cautious about making business deals with companies connected to the Chinese government, cautioning against potential espionage and political warfare.
The issues surrounding CATL and its partnership with Ford reflect broader concerns about China's influence in global green energy supply chains and the implications for U. S. national security. Stakeholders are urged to be vigilant regarding foreign partnerships, especially those involving companies with ties to military or political entities in China.
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