In the lead-up to the 2024 elections, Republican vice presidential candidate J.D. Vance expressed firm opposition to the planned establishment of a Chinese battery plant in Michigan during a campaign rally on Tuesday, attributing the decision to Democratic policies.
What Happened: Speaking in Big Rapids, Michigan, Vance targeted the Democratic Party and Vice President Kamala Harris for enabling Chinese battery maker Gotion to access clean-energy companies. He linked this to the Inflation Reduction Act (IRA), which Harris supported, reported Nikkei Asia.
“Remember the tiebreaking vote that she cast to send inflation through the roof?” Vance said. “Remember that vote? That vote also made Chinese companies like Gotion eligible for millions of your taxpayer dollars.”
Speaking near the Gotion site, Vance accused Democrats of aiding China. Gotion is investing $2.36 billion in a battery parts plant, approved by Democratic Gov. Gretchen Whitmer (D-Mich.) in October 2022. The plant is expected to create 2,350 jobs and is considered northern Michigan’s largest economic development project.
“Kamala Harris not only wants to allow the Chinese Communist Party to build factories on American soil, she wants to pay them to do it with our tax money,” said Vance.
Former President Donald Trump also opposed the Gotion deal, stating on Truth Social that it would put Michiganders under the influence of the Chinese Communist Party.
A judge in May ordered Mecosta County’s Green Township to stop blocking efforts to halt the plant’s development, citing national security concerns.
The Harris campaign preemptively dismissed Vance’s remarks, stating that Harris does not support an electric vehicle mandate, according to the report.
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Why It Matters: The controversy surrounding the Gotion plant is part of a broader context of U.S.-China economic tensions. In recent years, China has significantly increased its investments in advanced technologies, including EV batteries. China is allocating over $830 million to advance solid-state battery technology, with major companies like CATL and BYD Co Ltd. BYDDY BYDDF participating.
Moreover, the scrutiny over Chinese investments in the U.S. is not new. In July 2023, Ford Motor Co. F faced investigations over its $3.5 billion battery plant deal with Chinese firm CATL. U.S. House committees expressed concerns about the potential influence of the Chinese Communist Party over American companies.
The geopolitical landscape is also shifting, with both Harris and Trump expected to continue policies aimed at reducing economic dependence on China. This strategic decoupling could have significant implications for global trade and supply chains,
Lastly, the U.S. has recently added several Chinese entities to its export control list, a move criticized by China as undermining international trade rules. This ongoing tension further complicates the landscape for Chinese investments in the U.S.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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