Emily de La Bruyère, a Senior Fellow at the Foundation for Defense of Democracies, has expressed concerns regarding Chinese electric vehicle (EV) battery manufacturers utilizing U.S. subsidies and legal channels to expand their operations and influence within the American market. De La Bruyère made these remarks during congressional testimony.
"Gotion the U.S. subsidiary of China's battery giant Gotion High-Tech Co., Ltd. announced plans to build a $2.36 billion plant there in 2022," said de La Bruyère. "Gotion benefits from hefty state subsidies and is rapidly expanding internationally as part of the People's Republic of China's (PRC's) gambit to capture global battery markets. Despite its Chinese ownership, Gotion's project was, at this time last year, positioned to benefit from federal tax incentives created under the Inflation Reduction Act (IRA) and local government incentives, including some $800 million from the state of Michigan alone. A U.S. David faces a Chinese Goliath in American courts."
According to The Wall Street Journal, Ford's $3.5 billion Michigan battery plant, which employs technology from China's Contemporary Amperex Technology Co., Limited (CATL), mirrors the approach taken by Gotion. Gotion also sought to establish a significant U.S. battery factory supported by substantial Chinese expertise and capital. These projects exemplify how Chinese battery giants like Gotion and CATL leverage partnerships and subsidiaries to access lucrative American incentives, including those created by the Inflation Reduction Act, despite concerns over foreign ownership. Both initiatives have faced scrutiny at local and national levels, with critics warning that such ventures provide China with a powerful foothold in America's clean energy future and may expose U.S. supply chains to undue foreign influence.
As reported by the International Business Times, Ford’s decision to build a Michigan battery plant using technology from CATL highlights a broader trend where U.S. automakers rely on Chinese innovations and global supply chains to maintain competitiveness. Similar to Gotion, which benefits from substantial state subsidies and is rapidly expanding into international markets, CATL’s involvement in the U.S. illustrates how Chinese firms use technology partnerships to embed themselves within American industry. This reliance raises questions about the strategic risks of federal and state incentives inadvertently strengthening Chinese battery giants pursuing global market dominance.
According to Politico, CATL’s increased lobbying presence in Washington is part of a broader strategy by Chinese battery companies, including Gotion, to navigate growing political scrutiny as they expand operations in the United States. These firms are often positioned to benefit from both federal tax incentives and generous local government subsidies, as was the case with Gotion’s $2.36 billion Michigan project, which stood to gain up to $800 million in state support. The political and legal battles surrounding such projects reflect what some describe as a "David vs. Goliath" dynamic, with small American communities facing off against resource-rich, government-backed Chinese multinationals in high-stakes regulatory and legal environments.
De La Bruyère specializes in China policy with expertise in analyzing Beijing’s strategic and institutional structures. She has testified before Congress on issues such as China’s economic statecraft and has developed innovative methods for using primary Chinese-language sources to understand People's Republic of China (PRC) policies. De La Bruyère is also a co-founder of Horizon Advisory and leads U.S. research into China’s military-civil fusion and global technology ambitions.
