The Unveiled Letter
The chairs of two influential U.S. House committees are urging the Biden administration to launch an investigation into four Chinese companies allegedly linked to Ford Motor’s planned battery plant in Michigan. In a recently discovered letter, Representatives Mike Gallagher and Cathy McMorris Rodgers expressed concerns over the companies’ direct connections to the Chinese military, the Chinese Communist Party, the North Korean government, and alleged human rights violations in China’s Xinjiang region. While the identities of these Chinese firms remain confidential, the chairs have requested that the Commerce Department examine their involvement in the battery plant’s design, construction, and information technology (IT) processes.
Ford’s Response and CATL Agreement
Ford, in response to the request, stated its adherence to all government regulations and emphasized its strict standards, including the protection of human rights, which extend to its suppliers. The automaker clarified that it is the sole owner and operator of the battery plant. However, lawmakers expressed concerns regarding a deal between Ford and Chinese battery maker CATL, in which a Beijing-based company would oversee the concept design for the Michigan facility. The committee further revealed that this same Chinese company is providing engineering design services to the Chinese military.
Sanctions Evasion Probe
Apart from the Commerce Department, the chairs also wrote to the Treasury and State Departments, urging an investigation into potential sanctions evasion by one of the Chinese companies involved in the battery plant. They highlighted concerns about the company’s ties to North Korea and its role in providing IT tools for the facility. The lawmakers described Ford’s use of a data provider linked to North Korean Ministry of Foreign Affairs’ alleged sanctions evasion activities as “indefensible.” This development comes in the midst of ongoing allegations of human rights abuses, including forced labor, against the Uyghur population in Xinjiang, China.