Moolenaar and Gallagher Call on the Treasury Department to Deny Taxpayer Support to the CCP, Gotion
Today, Congressman John Moolenaar, a member of the Select Committee on the Chinese Communist Party (CCP) and Chairman Mike Gallagher (R-WI), the chairman of the committee, called on Treasury Secretary Janet Yellen to deny CCP-based companies from qualifying for tax incentives available to companies under the so-called Inflation Reduction Act that was signed into law last year. This includes Gotion Inc, a wholly-owned subsidiary of China-based Gotion High-Tech.
In a letter, the lawmakers wrote, "The United States is locked in a fierce competition to prevent the PRC from dominating the key technologies of the 21st century, investing billions to reduce the CCP’s chokehold over critical supply chains. It is highly concerning that the U.S. government would facilitate this chokehold by actively supporting CCP-backed companies expanding their foothold in the U.S. market, especially in a sector such as lithium-ion battery manufacturing …Allowing a CCP-supported company to erode U.S. strength and development in the domestic battery sector threatens U.S. national security and vital supply chains, particularly when such companies can leverage U.S. taxpayer-funded investments and credits for lithium-ion batteries as offered by the Inflation Reduction Act."
The letter concludes, by asking Yellen a series of questions related to the Treasury Department’s handling of the Gotion deal. Those questions are below.
1. Does Treasury intend to provide any U.S. taxpayer funding or other support to Gotion High-Tech Co. in connection with its construction of a lithium-ion battery manufacturing plant?
a. Follow-up: If so, what is the amount of U.S. taxpayer dollars that Treasury plans to allocate for this project?
2. Has Treasury been in communication with Gotion High-Tech Co. in connection with its plans to construct a lithium-ion battery manufacturing plant and possible tax inducements it could receive?
a. Follow-up: If so, please describe the nature of these communications.
3. Has Treasury been in communication with the State of Michigan—including but not limited to Governor Gretchen Whitmer’s office—regarding Gotion High-Tech Co.’s planned project?
a. Follow-up: If so, please describe the nature of these communications.
4. Why does Gotion High-Tech Co.’s project not currently fall under the jurisdiction of CFIUS?
a. Follow-up: What does Congress need to provide via new reforms to ensure these types of PRC projects fall under the jurisdiction of CFIUS?"
In a February 17, 2023 letter to the Secretary, Congressman Moolenaar requested CFIUS to examine the national security concerns regarding Gotion. The response from Treasury failed to inform and protect the American people.