CCP-Linked Company to Receive Over $1 Billion in Taxpayer Money and Benefits
Gotion Inc., a company with ties to the Chinese Communist Party (CCP), is poised to receive more than $1 billion in taxpayer funds and incentives for constructing factories in Michigan and Illinois. The company, which is "wholly owned and controlled" by CCP-connected Gotion High-Tech Power Energy Co., plans to build two electric battery plants in Michigan and one in Illinois, securing commitments in funding and benefits totaling over $1.25 billion.
In Illinois, Gotion Inc. will establish an electric vehicle battery gigafactory that is expected to commence production in 2024. The company will receive a total incentive package valued at $536 million, including tax benefits of $213 million over 30 years. The agreement also stipulates a minimum company investment of $1.9 billion and the creation of 2,600 full-time jobs paying at least 120% of the average wage in Kankakee County.
Michigan has also committed significant benefits to Gotion Inc., including $175 million in grants and $540 million in tax breaks. The state approved these benefits in response to the company's plan to build two electric vehicle battery factories in Big Rapids, with an investment of $2.36 billion and the creation of 2,350 jobs.
Criticism has arisen regarding President Joe Biden's Committee on Foreign Investment's approval of Gotion Inc.'s Michigan project, despite concerns raised by local residents. Additionally, the company is expected to receive millions of dollars in tax credits for its battery production under Biden's Inflation Reduction Act.
Gotion High-Tech, the parent company of Gotion Inc., employs hundreds of CCP members, including its CEO, Li Zhen. The company has established a CCP committee and subunits within its corporate structure, with over 50% of CCP members holding master's degrees or higher.
As Gotion Inc. receives substantial taxpayer funds and benefits, concerns arise about the potential influence of the CCP and the implications for national security and economic interests.
Conclusion: The Potential Impact on New Businesses
The substantial funding and incentives provided to Gotion Inc., a company linked to the Chinese Communist Party, could have significant implications for new businesses. The company's plans to construct electric battery plants in Michigan and Illinois, backed by over $1.25 billion in commitments, underscore the competition that new businesses may face in securing similar incentives.
The fact that Gotion Inc. is "wholly owned and controlled" by a CCP-connected company raises concerns about foreign influence and potential national security risks. For new businesses, particularly those in the technology and manufacturing sectors, this could mean increased scrutiny and regulatory challenges.
Moreover, the creation of thousands of jobs by Gotion Inc. could impact the labor market, potentially making it more competitive for new businesses to attract and retain skilled workers. This could further strain the resources of new businesses and impact their growth prospects.
Lastly, the approval of Gotion Inc.'s projects by President Joe Biden's Committee on Foreign Investment, despite local criticism, suggests that new businesses may need to navigate complex political and social dynamics to secure similar approvals. This could further complicate the business environment for startups and small businesses.
In conclusion, while the funding and incentives provided to Gotion Inc. present significant opportunities for the company, they also highlight the challenges that new businesses may face in securing similar support and navigating a competitive and complex business environment.