Yard signs along the quiet country roads of Green Charter Township, Mich., home to horse farms and a 19th-century fish hatchery, blare a message that an angered community hopes is heard by local leaders, the Biden administration, and China: “No Gotion.”
The opposition is to a plan by Gotion, a subsidiary of a Chinese company, to build a $2.4 billion electric vehicle battery factory on roughly 270 acres of largely uninhabited scrubland. Many residents fear that the company’s presence is a dangerous infiltration by the Chinese Communist Party, leading to backlash, death threats, and an attempt to remove elected officials who supported the project.
This debate over the factory has turned Green Charter Township into an unlikely battleground in the economic contest between the United States and China. It is part of a broader movement by states to implement new barriers to Chinese investment due to concerns about national security and growing anti-China sentiment.
The animosity towards China has deterred Chinese investment in the United States in recent years. Annual investment by Chinese companies has significantly dropped from $46 billion in 2016 to $5 billion in 2022, and employment at Chinese firms in the United States has also declined.
However, with new federal incentives aimed at promoting American production of electric vehicles, investment is starting to turn around. Companies from China, among others, are taking advantage of tax credits for businesses that manufacture renewable energy products within the United States.
Chinese companies, including Gotion, could access up to $125 billion in US tax credits for “green energy manufacturing” investments. While concerns have been raised about American taxpayers subsidizing Chinese firms, the Treasury estimates that only 2 percent of the electric vehicle and battery investments made during the Biden administration involve Chinese companies.
Gotion, which already has operations in California and Ohio, chose Michigan as the location for its factory after receiving significant grants and tax exemptions from the state’s strategic fund. However, a vocal contingent within the community has been working to halt the project, raising conspiracy theories and concerns about national security.
Opponents are hoping to replace the Green Charter Township board through a recall election in November and are raising funds to file lawsuits and petitions against the permits required for the factory’s construction.
Despite the controversy, some residents and officials believe that the economic opportunities presented by the factory outweigh the concerns. They argue that the investment will create jobs and bring vitality to the region. Others are coordinating with activists in other states to learn how to terminate Chinese investments.
The battle over the Gotion factory reflects the larger tensions between the United States and China. It highlights the challenges of balancing economic opportunities with national security concerns and the growing anti-China sentiment within certain communities.
Unique Perspective:
The conflict surrounding the Gotion factory in Michigan’s Green Charter Township underscores the complex relationship between the United States and China. While economic cooperation and investment can bring benefits, concerns about national security and anti-China sentiment have created divisions within communities. This case serves as a reminder that navigating this relationship requires careful consideration of both the potential economic gains and the security implications involved. It highlights the need for open dialogue and informed decision-making to strike a balance between these competing interests.
