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Mike Gallagher (R-Wis.) | X

Committee chairs request blacklisting of Chinese companies affiliated with Ford battery factory

China

Chairman Mike Gallagher (R-Wis.) of the House Select Committee on the Chinese Communist Party and Chair Cathy McMorris Rodgers (R-Wash.) from the House Energy and Commerce Committee are urging for the blacklisting of certain Chinese companies. These companies, reportedly linked to the Chinese military, are intended to be utilized by Ford in its forthcoming factory with Chinese battery maker Contemporary Amperex Technology, Co. Limited (CATL).

The two Chairs have penned a letter to Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen, pressing them to designate "at least four Chinese companies that supply the same types of IT tools to the Chinese military, North Korean government, and China’s Ministry of Public Security" for blacklisting. This initiative is a response to evidence suggesting Ford's plans to use this technology and software in their imminent battery factory, in partnership with CATL. The lawmakers seek assurance that these companies will be blacklisted by February 5, 2024, according to a press release from the Select Committee on the Chinese Communist Party.

"It is indefensible for Ford to use the same cloud integration and data provider that is linked to North Korean Ministry of Foreign Affairs sanctions evasion activity," Gallagher and Rodgers wrote in their letter. They added: "Before the Ford plant even comes online, its entire security system could be compromised by this software...The same company that is actively supporting China’s surveillance state will have the capability to embed backdoors, spyware, and other forms of malware within Ford’s iPaaS infrastructure, compromising the confidentiality and integrity of Ford’s sensitive information and posing risk to American’s data privacy rights."

The partnership between Ford and CATL had previously sparked concerns among lawmakers about potential implications tied to forced labor and Chinese technology. In response, lawmakers including Gallagher called for an investigation into this alliance in September. They demanded specific documents such as "a copy of the licensing agreement between Ford and CATL," "all documents and communications between Ford and CATL referring or relating to the licensing agreement," as well as "all documents and communications between Ford and the Biden Administration referring or relating to the Ford/CATL licensing agreement."

In a letter addressed to Ford CEO James Farley, Jr., Gallagher and Rodgers specifically requested that Ford "make available for an interview a company official who will be able to speak with us about the due diligence Ford conducted before and after it entered into the agreements with CATL."

The Select Committee on the Chinese Communist Party, chaired by Gallagher, was established to counteract the influence of the CCP. This bipartisan committee is committed to "working on a bipartisan basis to build consensus on the threat posed by the Chinese Communist Party and develop a plan of action to defend the American people, our economy, and our values". Its members include Representatives such as Michelle Steel (R-Calif.), Andy Barr (R-Ky.), Shontel Brown (D-Ohio), Jake Auchincloss (Mass.), among others.

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