Chinese state-run publication cheers Gotion’s Illinois and Michigan projects as expansion of global supremacy in E.V. supply chain – Wirepoints

The Global Times is a Chinese government publication controlled by the Chinese Communist Party. Its October 31 column celebrates China’s expansion of its dominance over the the electric vehicle and battery supply line into the United States and the rest of the world.

The column directly highlights Gotion’s E.V. battery factories planned for Illinois and Michigan as examples of China’s expected preeminence in the U.S. market. Those projects are being subsidized with billions of state and federal tax dollars, and Gotion has multiple ties to the Chinese Communist Party.

“China has formed a relatively complete EV manufacturing supply chain, and about 70 percent of the global battery production capacity is located in China,” says the article. China “has formed the world’s largest battery manufacturing value chain, extending from material research and development, battery production, recycling to equipment support….”

And now, “‘Going global’ is an inevitable trend for Chinese battery makers,” the articles says. “The US is a hot destination for battery and EV investment. The supply chain of the traditional internal combustion engine auto-making there is relatively complete, which could bring new market space for Chinese companies.”

What’s the first example in the column of the projection of Chinese dominance abroad?

Gotion, with its Illinois and Michigan projects. From the Global Times column:

As one of the latest examples, Chinese battery manufacturer Gotion High-tech Co announced two investment plans of battery plants in two US states – Illinois and Michigan.

The planned $2-billion lithium battery manufacturing plant in Illinois is expected to produce 10 GWh of lithium battery packs and 40 GWh of lithium-ion battery cells annually.

Gotion said that it will invest $2.36 billion in the Michigan plant, with plans to complete plant construction by the end of 2031. 

The Global Times column warns that Chinese companies may face more regulatory scrutiny and market access restrictions in the U.S. than American companies do.

If only that were so. For its Illinois project that will cost Gotion just $2 billion, state and federal taxpayers will hand Gotion $8 billion.

Gotion should not be in the U.S. and its two projects should be killed. Polls in both Illinois and Michigan confirm that voters want Gotion out. And our governments have no business handing out billions in taxpayer subsidies to companies with direct Chinese Communist Party ties, especially in sensitive industries.

*Mark Glennon is founder of Wirepoints.

UPDATE: Last week, an Iranian economic minister visited Gotion in China and toured its R&D facility to emphasize their “broadening bilateral cooperation in the automotive sector.”

Wirepoints is collecting its columns relevant to Gotion here. Some of what we have published: 

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Paula Va
2 years ago

Pritzger has national ambitions so whatever furthers that agenda he will do…..the people be damned!!

debtsor
2 years ago

Like the parable of the Chinese Farmer, “Maybe So. Maybe Not. We’ll see.” Which basically means “The moral of this story, is, of course, that no event, in and of itself can truly be judged as good or bad, lucky or unlucky, fortunate or unfortunate, but that only time will tell the whole story.” We’ll see if this plant ever gets built. This Chinese economy has massive problems right now: massive food and oil importer, collapsing real estate market, high youth unemployment rates, too many old people, no social safety net, high government debt loads. I know people are constantly… Read more »

ToughLove
2 years ago
Reply to  debtsor

All good points debstor. Most Americans have no idea how bad the next couple decades look for China. It was an economic powerhouse during the beginning of this century, but it can’t continue any longer for the reasons you listed. Why Pritzker wants to get in bed with them at this point makes no sense. Even politically, it seems like a bad move. I can only assume something sinister is going on behind the scenes.

debtsor
2 years ago
Reply to  ToughLove

If JB was at a bar in Chicago, and he was really drunk, then Gotion was the last girl left at the bar at 2:00 am closing time and he decided to bring her home for the night. He too knows that this plant may never get built but he doesn’t care. He’s only looking for one night of fun where he can brag that he brought home a hottie, and he’s probably going to catch VD too.

FJB
2 years ago
Reply to  debtsor

He never goes to bed with an ugly woman but he sure wake up with some.

Riverbender
2 years ago

I find it hard to believe that somewhere along the line some of the millions that are in excess of the plant building needs will be flowing into the pockets of assorted USA politically connected individuals. Being Democrats are involved in this my guess it is their party, including JB, that is being rewarded. Between the rapid invasion of our country via open borders and the flows of capital to foreign Governments things look rather gloomy for our Country thanks to these Democrats and to think USA voters wanted it this way either by voting or by not voting; the… Read more »

RON
2 years ago

Even Adam Smith would turn thumbs down on this government give away.We are off on the road to serfdom.

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