Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party (CCP) stated that the Treasury Department should use its newly expanded authority to block the CCP-linked firm Gotion from purchasing land to build an electric vehicle plant in Michigan. Moolenaar shared his statement in a July 8 press release.
"I welcome the Department of the Treasury's addition of over fifty military installations to be covered under CFIUS regulations," said Moolenaar. "Treasury's first move under this expanded authority should be to deny the land purchase by CCP-backed firm Gotion, which is within 100 miles of the newly added Camp Grayling. Congress needs to close this gaping loophole to protect American national security."
On July 8, the U.S. Department of the Treasury, which leads the Committee on Foreign Investment in the United States (CFIUS), issued a Notice of Proposed Rulemaking (NPRM) that would expand CFIUS control over transactions done by foreign persons involving real estate. According to a press release, the proposed rule would add more than 50 military installations in over 30 states to a list of installations that CFIUS has authority over.
Treasury Secretary Janet Yellen said, "CFIUS plays an integral role in U.S. national security by thoroughly reviewing real estate transactions near sensitive military installations, and this proposed rule will significantly expand its jurisdiction and ability to accomplish this vital mission." The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) allows CFIUS to review purchases by a foreign person of U.S. real estate in close proximity to a military installation, and the recent proposed rule adds onto this existing jurisdiction.
A report on Gotion Inc., a Chinese-owned company, issued by Michigan Senate Republicans in September found that the company "self-reported employing 923 members of the Chinese Communist Party, including the CEO." Michigan State Senator Lana Theis said, "Gotion’s deep ties to the Chinese Communist Party have been a known problem since this project came to light… The company clearly does not shy away from its CCP affiliations, yet those involved with the U.S.-based subsidiary, some members of the Legislature and the Whitmer administration continue to downplay its communist connections."
Gov. Gretchen Whitmer announced in October 2022 that Gotion would build an electric vehicle battery plant in Mecosta County, north of Grand Rapids, according to Detroit Free Press. Board members of Green Charter Township, where the plant would be constructed, voted to reverse an agreement related to building the plant, and Gotion is now suing the township.
Moolenaar represents Michigan’s Second Congressional District. In addition to chairing the House Select Committee on Strategic Competition Between the United States and China, he is Michigan’s senior member of the House Committee on Appropriations.
