Michigan state senators are calling for an urgent investigation into Gotion High-tech Co., Ltd., whose subsidiary is being considered for taxpayer funding to support a battery manufacturing plant in Big Rapids. The senators are concerned about the company’s direct ties to China, which they claim presents a national security risk, as well as the lack of transparency and oversight surrounding the proposed project.
Local State Senator Ed McBroom (R-Waucedah Township) joins Lana Theis, Joe Bellino, Dan Lauwers and Kevin Daley in the request to Michigan’s congressional delegation on Tuesday to investigate Gotion’s proposal. The company, in partnership with The Right Place economic development group, is proposing a multimillion square feet facility on hundreds of acres near Big Rapids. The plan includes the transfer of $175 million in Strategic Outreach and Attraction Reserve (SOAR) funding, as well as hundreds of millions of dollars more in various incentives. All told, the project would receive over $800 million in combined cash and incentives from the state.
“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 senators said. “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.”
The senators’ request for an investigation comes amidst growing concerns about the lack of transparency and oversight surrounding the project. The senators are calling on Michigan’s congressional delegation to conduct a thorough investigation into Gotion’s proposed project, including its ties to the Chinese government and the potential risks associated with the lack of transparency and oversight. They are urging their colleagues to ensure that any taxpayer funds allocated to the project are done so in a responsible and transparent manner, with appropriate safeguards in place to protect American interests.
Michigan does not have any direct laws when dealing with Chinese businesses or investors, but do have other laws regarding conducting businesses with Iran. Munising Public Schools had to exclude a bid from Holiday Gas Stations for bus fuel because the company did not fill out a form stating that they do not use Iranian oil last summer.
The project would bring in roughly $2.4 million dollars of initial investments leading to 2,350 jobs in the Big Rapids area.
