OPINION:
Michigan has become ground zero for Beijing’s efforts to undermine America from within. Its target method? Economic incursions in the form of investments and partnerships.
Although less overt than traditional warfare, Beijing’s economic warfare is designed to increase U.S. reliance on China and serve as footholds for espionage and even potential sabotage on U.S. soil.
The Senate is considering President Trump’s One Big Beautiful Bill Act, passed by the House of Representatives. The legislation includes provisions that attempt to address this national security threat.
Although the House-approved version offers some guardrails, it allows U.S. companies that rely on Chinese technology to receive the Section 45X advanced manufacturing production tax credit for two years.
To correct this major weakness, the Senate must close this gap and ensure that no tax credits or incentives in this legislation benefit Beijing for any period.
Two high-profile examples in Michigan highlight the stakes: an electric vehicle battery plant in Big Rapids developed by Gotion and an EV battery plant in Marshall developed by Ford and Contemporary Amperex Technology Ltd.
Gotion and CATL are Chinese companies closely tied to the Chinese Communist Party. These projects are not merely commercial; they are Trojan horses designed to expand China’s strategic entanglement in the U.S. under the guise of global commerce.
Assertions that these partnerships are peaceful investments are naive. Under Chinese law, there is no such thing as a private company. All Chinese companies are required to assist in intelligence-gathering.
The U.S. government banned the Pentagon from acquiring CATL and Gotion batteries because of surveillance concerns and designated CATL as a Chinese military company. As such, CATL is empowering the People’s Liberation Army, which American troops may have to face in the not-too-distant future.
As President Biden’s director of national intelligence warned in 2022, Beijing uses state and local investments to exert subnational influence over U.S. policy. The CCP gains influence by embedding itself in Michigan’s economy through projects such as the Gotion and CATL battery plants.
These deals give Beijing leverage over state and local leaders who become economically dependent on the continued investment, jobs and tax revenue. That economic reliance can translate into political pressure, softening local resistance to China’s agenda and creating incentives to oppose federal actions that might threaten those deals.
In effect, Michigan becomes a proxy, an unwitting obstacle to a tougher U.S. line against Chinese aggression. As Mr. Trump asserted on Truth Social, the Gotion plant “would put Michiganders under the thumb of the Chinese Communist Party in Beijing.”
Meanwhile, China continues to weaponize U.S. dependence on its exports as a form of leverage, using supply chains to deter American actions it considers unfavorable. In 2006, 2010, 2020 and 2023, China limited a wide range of exports to the U.S., including critical minerals and personal protective equipment, to punish Washington for its geopolitical actions. Reliance on China equals leverage for Beijing. China is amassing further advantages by inserting itself into the future of EV batteries, which are foundational to the future of U.S. transportation. It’s also creating more windows for sabotage, as U.S. authorities continue to find “kill switches” in imported Chinese products that could cripple U.S. power grids.
To their credit, Michigan lawmakers from the local level to the state Legislature have fought valiantly against China’s efforts to plant roots in the state, putting local lawmakers in the driver’s seat against America’s foremost geopolitical adversary. Sen. Elissa Slotkin, Michigan Democrat, has also publicly opposed these projects. Unfortunately, because of Gov. Gretchen Whitmer and her allies’ decision to put money over country, these projects are continuing apace.
• Joseph Cella served concurrently as U.S. ambassador to Fiji, Kiribati, Nauru, Tonga and Tuvalu from 2019 to 2021. A co-founder of the National Catholic Prayer Breakfast and Catholic Vote, he is director of the Michigan-China Economic and Security Review Group.
Please read our comment policy before commenting.