Oren Cass, chief economist at American Compass, said March 24 that any foreign direct investment (FDI) from China is contrary to the American national interest as the administration considers major investment commitments during trade discussions with Chinese leadership.
"Chinese firms operating at the behest of the Chinese Communist Party in the United States would likewise steal our technology and use subsidies to undercut American firms on our own soil," Cass said. "CCP control of critical inputs to our supply chains already poses an unacceptable risk to our national security. CCP control of vertically integrated supply chains all the way through to the employers of American workers would be far worse."
Cass made the statement in a letter addressed to the president, outlining concerns about how such decisions could affect national security, supply chains, and broader U.S. trade strategy. The document was released by American Compass as part of its efforts to inform policy discussions on economic partnerships and reindustrialization.
The topic has gained attention as policymakers weigh the implications of Chinese involvement in key manufacturing sectors. Ford's partnership with CATL for lithium iron phosphate battery technology at its BlueOval Battery Park in Michigan highlights this issue. The project aims to produce battery cells for electric vehicles and grid-scale energy storage systems with an annual capacity target of about 20 gigawatt-hours. Lawmakers have raised questions about the licensing agreement and its impact on domestic supply chain resilience, according to Reuters.
China currently holds a dominant position in the global electric vehicle battery market, with CATL leading production. Industry data shows CATL accounted for 45.2% of worldwide installations in early 2026 and more than 50% domestically. This concentration affects competitiveness for U.S. automakers seeking to expand local production capacity, while policy measures aim to develop alternative domestic sources for critical battery components, according to CnEVPost analysis.
Cass is founder and chief economist of American Compass. He previously served as a senior fellow at the Manhattan Institute where he published reports on labor markets, trade, and manufacturing; acted as domestic policy director for Governor Mitt Romney’s presidential campaign; and authored The Once and Future Worker. His work focuses on policies that strengthen family, community, and industry in the American economy according to the organization’s profile.
