By: Mark Glennon*
On September 8, Governor JB Pritzker announced the state’s deal with Gotion, a Chinese company, for construction of an electric vehicle (EV) battery factory in Manteno, southwest of Chicago.
But Gotion’s ties to the Chinese Communist Party (CCP) and the joint ventures it’s reported to have with the Chinese military make it a national security threat, and taxpayers will be funding the $2 billion project with subsidies around four times that amount.
- Why has Illinois ignored Gotion’s relationship with the CCP?
- What possible justification is there for subsidies of $8 billion – an unheard of $3 million per job?
- Why haven’t adequate disclosures been requested of Gotion?
- What else would be discovered about Gotion if we got adequate disclosures?
- What, if any, due diligence was done on Gotion?
- Doesn’t Illinois care that trade secrets and know how developed at the factory will flow directly to the Chinese military?
Those questions and more are obvious, yet they’ve not even been put to the Illinois officials responsible. In Michigan, a firestorm of controversy is widely reported over those questions for a very similar Gotion project there. But from Illinois media there’s not a peep.
Illinois appears to have entirely disregarded warnings issued last year to state and local officials — about companies just like Gotion — issued by the National Counterintelligence and Security Center. Their report is titled “Protecting Government and Business Leaders at the State and Local Level from Peoples Republic of China (PRC) Influence Operations.”
It warns that “geopolitical reality has placed state and local officials in the United States and other nations on the front lines of national security…. The PRC may also view a U.S. state or localities’ economic or other challenges as a key opportunity to create a dependency, thereby gaining influence.”
The report goes on: “Know your partners and who you are doing business with…. “Understanding the scope and depth of the PRC government’s active role in guiding and often exploiting China’s subnational relationships overseas is the first step towards mitigating risks…. PRC subnational engagements may involve a variety of entities, ranging from PRC government institutions to companies to cultural groups. None of them are necessarily free of Beijing’s control.”
Maybe Illinois’ disregard for those warnings is why the South China Morning Post recently reported that Chinese businesses particularly like Illinois, along with California and New York. “And such an approach seemed to work well, as Mary Ma, the China representative for the Midwestern state of Illinois, quoted Governor J.B. Pritzker as saying his state strives to be ‘the friendliest state in America for Chinese businesses.’”
If Illinois and Michigan had honored those warnings, one key step would have been to demand a full disclosure statement from Gotion, known as a Form 800, to allow for a proper review of foreign companies. That’s what’s being demanded now in Michigan by some prominent opponents of Gotion’s plant there: Former U.S. Ambassadors Peter Hoekstra and Joseph Cella called on the Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) to compel Gotion to deliver those disclosures.
In Michigan, Gotion delivered only a short-form disclosure that says little. In Illinois, we’ve seen no report of even that being done. Delivery of a completed Form 800 would also allow CFIUS to properly review Gotion’s plans, and potentially to block them, which we described in our last column on Gotion.
That should be demanded for Gotion’s projects in both Michigan and Illinois — submission of Form 800, for all to see and for CFIUS to properly review, covering both Gotion’s US subsidiary and the Chinese parent company that wholly owns and controls it, Gotion High Tech.
At least some politicians in other states have been asking questions. Last week, two members of the House Select Committee on the CCP, Mike Gallagher (R-WI) and Rep. John Moolenaar (R-MI), wrote to Treasury Secretary Janet Yellen demanding answers about Gotion.
And just yesterday, House Ways and Means Committee Chairman Jason Smith (R-Missouri) also wrote to Yellen on similar concerns about different Chinese companies receiving huge federal tax breaks for EV-related plants in the U.S.
Locally, Congressman Darin LaHood (R-Illinois) did start the process of asking questions about the Illinois plant in his statement to us in our last column. LaHood also sits on the House CCP committee. He told us,
“I have serious concerns about Governor Pritzker and the Biden Administration’s active support for CCP-backed companies looking to expand their foothold in our economy. While I support incentives and improvements to our business climate in Illinois, I don’t believe taxpayers should be on the hook for billions in subsidies funneling to companies beholden to the Chinese Communist Party. One of the reasons I opposed the so-called ‘Inflation Reduction Act’ was the potential for foreign adversaries to exploit loopholes to gain generous incentives and dominate key technologies in the United States. Illinois taxpayers deserve to know why Governor Pritzker and the Biden Administration are allowing CCP-backed companies to leverage taxpayer-funded investments, potentially threatening our domestic supply chains and national security.” [Emphasis added.]
Aside from the Pritzker and Biden Administrations, LaHood’s point should be made to Congressman Raja Krishnamoorthi (D-Illinois) because he is the ranking Democratic member of the House Select CCP Committee. Doesn’t he want answers? Ask him. We have. No response.
Perhaps we are past the point of merely needing answers and should simply demand that all Gotion projects in the U.S. should be killed – based on evidence we already have. That evidence includes the following:
- A Daily Caller exclusive report details Gotion’s joint venture with Chinese military subsidiaries.
- The Gallagher-Moolenaar letter mentioned above says,
Gotion High-Tech Co.[the Gotion parent company] is a PRC company that has direct ties to the CCP and state-owned financial institutions. Gotion has been an active participant in the PRC-based version of the “Thousands Talent Program,” a program the FBI itself says encourages theft of trade secrets and economic espionage. Gotion has established multiple “Communist Party Units” within its operations and has publicly sought PRC provincial government support for its desire to expand its operations overseas. Even when courting major Western investment, Gotion has been adamant about retaining PRC-based control, including requiring that Volkswagen give up part of its voting rights, despite Volkswagen acquiring over 25 percent of the company. [Footnotes omitted.]
- The parent company’s CEO, Zhen Li, who joined Pritzker on the stage at the Illinois project announcement, is a member of the Chinese People’s Political Consultative Conference, which is a central part of the CCP’s “united front” strategy.
- A former counterintelligence official says it’s “100%” likely CCP will use Gotion’s Michigan battery facility for spying.
“Pritzker’s vision of Illinois as an electric vehicle production hub is in danger of becoming a pipe dream,” as Crain’s wrote last year, because Illinois had then gone “0 for 18 in the competition for battery plants.” It certainly looks like the Gotion plant was a desperate grasp for a supposed success, sacrificing national security and $8 billion of taxpayer money.
Citizens of Manteno know. They turned out to express their anger at a Monday village board meeting, the highlights of which we’ve compiled here. Nobody spoke in favor of the project.
*Mark Glennon is founder of Wirepoints.
This column was updated to correct Rep.Krishnamoorthi’s title to ranking Democratic member of the CCP committee from chair of that committee.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
Hmm.. only Repubs voicing any concerns re this fishy “ deal “. Something to remember when being told about how “ transparent “ Joe, Pritzger and Mayor Tupac are tooting their horns about how “ transparent “ the Dems are.
Hurry! IF YOU BELIEVE THAT A PUBLIC BODY HAS VIOLATED THE OPEN MEETINGS ACT, YOU CAN TAKE ACTION. HERE IS WHAT YOU NEED TO KNOW. What can I do if I think a public body has violated OMA? Within 60 calendar days from when the alleged violation occurred, you can file a Request for Review with the Public Access Counselor at the Office of the Attorney General, or you can bring a civil action in circuit court against the public body. What is a Request for Review? A Request for Review is a letter sent to the Public Access Counselor… Read more »
Very similar to “Peaker Plant” incursion.
Extremely high water use, ‘cone of depression’ created on local wells (private and public).
First and foremost, local elected’s for reasons either innocent (willful ignorance) or nefarious (outright bribery) are sometimes eager to be ready to ignore pesky details like OMA.
That’s where local victims should concentrate initial efforts. Re-zoning or conditional use permits require specific public notification and other requirements under ILCS and OMA.
Have local elected officials met privately with Gotion in violation of OMA (no public notice or public comment, for example)? There’s a start.
Same with ethanol plants. My county turned them down because of them wanting a million gallons of water a day.
I’d like to see the environmental impact study.
Me too. In Michigan, there’s lots of controversy about water consumption and other environmental matters. I haven’t written on that because I am not up to speed on it.
Manteno Residents Protest Gotion At Village Board Meeting – Manteno Daily Journal
A video of it is linked at the bottom of the column. They were all opposed and very angry.
That’s amazing! Even more amazing: not one speaker chastised the attendees about “voting for this” or not moving out. What are the odds? LOL
The full meeting has people chastising them for that reason
I think you need to watch that video again. Every speaker chastised the board members in many ways!
I’m not sure how you mixed up the board members with attendees or why you think I need to watch it again, but I’ll work with it.
You’re missing context. There’s someone that posted below about moving out and almost every other Wirepoints article has a commenter proclaiming that “the people voted for this.” These statements are disparaging and demoralizing. I felt it necessary to bring the contrast to Mark’s attention, because it never happens in real life. Basically, I think this site has a troll infestation.
Yes. It’s disparaging and demoralizing to point out the truth that the voters have chosen this. You’ve asked Mark to turn this site into a propaganda outlet and he’s refused. How sad for you. Now you will need to hear opinions that differ from yours. Oh the horror.
You can keep trying but that doesn’t mean that people who point out your lunacy means it’s filled with trolls. We are still waiting for you to save us all with your inspiring articles that you promise to write but yet never deliver.
No, I offered to prove that it’s infested with trolls and he didn’t express interest in going further.
I’ve offered to provide this site with FREE content that explains how the entire political town square (basically every internet comment section) is being manipulated with trolls, bots, bad actors, and everything under the sun.
if you think sadists, jerks, trolls, defeatists, and dupes make up the majority of the public, I’ve got a bridge to sell you.
I don’t think they make up the majority of the public or the people that comment here. You just can’t handle that people have a different opinion from you so you revert to dehumanize them by calling them trolls and whining non-stop to Mark about it. He didn’t ask for your help nor does he need it. Do you typically go around offering to help people that haven’t expressed any need for assistance? He’s offered to amplify your “FREE” content if it offers any value yet you haven’t produced anything. Perhaps you already know its true value and are afraid… Read more »
You’re right, fraud does not play into the absurd election results that keep happening in Illinois. Because IL’s election law reforms of the 80’s, 90’s, 00’s and 20’s really put an end to the century long ballot box stuffing that Chicago was famous for. Chicago has the safest and most secure elections ever. No fraud here.
Reforms like mail in balloting, ballot harvesting, no signature matching, early voting, absentee balloting, refusal to purge voter rolls, and other ‘fortifications’ give IL the most secure elections ever as compared to places that only allow each living person to vote once.
/snark
David, I’ve seen no free content offered by you. I you or anybody else have something that’s in our wheelhouse, send it and we will consider posting it. There’s no basis to suspect there are trolls here. We’ve met enough of them to know they are sincere, and we have no intention of censoring them or anybody else.
What’s Joe and Hunter’s cut?
Cancel it and investigate the bribery, and prosecute the Democrats involved. Whole thing is an obscene outrage to citizen taxpayers and the rule of law.
Need email addresses for Pritzker, Dixon, and Duckworth as well as local Congress people.
Why would anyone downvote this? If someone reading here believes Illinois citizens shouldn’t ask questions, rather than downvoting, explain your position. So strange.
They’re downvoting it because there are lots of duplicitous characters participating in this comment section. At first impression, most appear to be on your side, but in reality they are playing a long game that demoralizes and breaks up any resistance to their political goals. It could be Democrats. It could be Chinese. There’s a small chance it’s organic, but my Spidey senses don’t think so. Here’s a detailed explanation of how the Chinese approach diplomatic challenges and aim to win without fighting. These techniques aren’t exclusive to the Chinese, and all sovereign countries, as well as a substantial number… Read more »
Larry, no offense, but I for one downvoted it because it seems to me you should be able to look up the addresses yourself if you think its important enough without asking somebody else to do it for you.
Ooooh, I get it. I didn’t read the comment as Larry asking for emails – just stating he has to get them.
and meanwhile the UAW is silent? I’m sure UAW could care less about Gotions relationship to CCP. The UAW is desperate, just like JB, to get into the EV game as so many of the EV plants are being built in non-union south. Is the Gotion EV plant in Michigan UAW? would the Illinois Gotion be UAW?
How can a moral person continue to reside in Illinois? Answer, they can’t. Now Illinois is apparently giving it’s state taxpayer money to the country that started covid and is a military threat to Asia (as well as the U.S.). Remaining in Illinois because you benefit financially is like selling your soul to the devil. Tennessee is less than a days drive away. No state income tax. Low property taxes. Existing public debt per person is very low so near future tax hikes will be reasonable. Also, I seriously doubt Tennessee would ever consider giving China a sweetheart deal. Just… Read more »
The only people left in Illinois fall into three categories:
It’s the people in number 3 that will be surprised when they’re the only people left to pay the tax bill.
There are also those that still have high paying jobs, in both the private and public sector, that will dismiss/ignore anything so long as they keep getting paid. They wouldn’t care is North Korea or Iran opened a nuclear weapons facility in Illinois using taxpayer money.
Another reason many stay in this cesspool of a state is the fact they have family that reside here.