The U.S. Treasury Department said Monday it plans to impose new restrictions that would restrict two Chinese battery companies from pursuing plans to build factories next to military installations.

The Ministry of Finance has a new suggestion On Monday, the US announced it was expanding the powers of the Committee on Foreign Investment in the United States (CFIUS) to block certain foreign-related companies from purchasing land near US military installations in the US. The proposed rule would block two separate subsidiaries of a Chinese company, Cnano USA and Gotion Inc., that had planned to buy land and build factories near military installations in Michigan, Illinois and Kansas. (Related article: China conducts military drills just a few hundred miles from U.S. military bases in Europe)

Guoxuan, a “wholly-controlled” subsidiary of China-based, Communist Party-linked Gotoxuan High-Tech, planned to build a battery manufacturing plant within about 90 miles of Camp Grayling, Michigan, the nation's largest National Guard training facility. The company also planned to build a factory within about 30 miles of an Army Reserve base in Illinois and within 15 miles of a National Guard facility.

Goshion Hi-Tech has established an internal CCP committee and, as of 2022, employs 900 CCP members, including the company's CEO, Li Zhen. according to From the company's 2022 ESG report.

“Our company establishes party organizations and conducts party activities in accordance with the Constitution of the Communist Party of China. Our company ensures the necessary conditions for carrying out party activities.” read The Articles of Incorporation of Kokuten Hi-Tech.

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Background: Goshon, a subsidiary of China's Goshon Hi-Tech, which has extensive ties to the Chinese Communist Party and the Chinese military, is headquartered in California and is building EV battery factories in Michigan and Illinois.

(Photo: Xi Jinping with Li Zhen, chairman of Guotai Hi-Tech) pic.twitter.com/rcCzAVmEF9

— Philip Lenczycki (@LenczyckiPhilip) April 5, 2024

A Daily Caller News Foundation investigation previously found that top Goshon executives attended multiple meetings in China with Chinese Communist Party members, even though the company's vice president had previously claimed the company had no ties to the Communist party.

Michigan's Democratic governor, Gretchen Whitmer, previously boasted that Gouchon's new plant would be an economic windfall that would propel her state to become a “global hub for mobility and electrification.” Michigan Democratic lawmakers approved $175 million in state subsidies and a series of tax breaks to help Gouchon build the new multi-billion-dollar plant.

Goshon has also been approved for $536 million in state grants to build the plant, as well as tax incentives that could bring in hundreds of millions of dollars in additional revenue, according to the office of Gov. J.B. Pritzker, a Democrat who initially announced the state's partnership with the company. statement During September.

New Treasury rules could allow CFIUS to block Gotion Inc. from building a new factory.

“We welcome the Treasury Department's decision to add more than 50 military facilities to the CFIUS regulatory list,” said Rep. John Moolenaar, R-Mich., chairman of the Select Committee on China. statement “This is another sign that state and local leaders should also withdraw support for Gochon.”

The second China-linked company affected by the Treasury Department's proposed restrictions is Cnano USA, which had planned to build a vast battery manufacturing facility within about 70 miles of Whiteman Air Force Base (AFB) in Kansas.

A tip of the hat translation: + Tiffany Meyer Please invite me to the discussion Daily CallerRecent investigations into Cnano's ties to the Chinese Communist Party, a company that plans to build a facility near a U.S. military base

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— Philip Lenczycki (@LenczyckiPhilip) December 29, 2023

Cnano USA is a wholly owned subsidiary of C-Nano Technology Co., Ltd., which is itself owned by China-based Cnano Jiangsu Technology Co., Ltd. (Cnano Jiangsu). according to A DCNF investigation previously found that Cnano Jiangsu employed dozens of CCP members, according to Cnano Jiangsu's 2022 annual report, and Cnano USA's chief executive officer acknowledged this at a Kansas state legislative committee hearing in March.

The DCNF also previously revealed that Cnano Jiangsu promotes Communist ideology and participates in the Chinese government's “863 Program,” which is being investigated by U.S. intelligence agencies. Shown This is an effort to support the development of the Chinese military and “provide funding and guidance for efforts to covertly obtain U.S. technology and sensitive economic information.”

The DCNF investigation found that Cnano Jiangsu's website had previously advertised that the company was “implementing a number of national-level 893 initiatives.” References to the 893 program were removed from the website in December without explanation following the DCNF investigation.

Kansas Governor Laura Kelly, a Democrat, vetoed a Republican-proposed bill in May that would have blocked Cnano USA from building a new $95 million factory near the military installation. according to To the Kansas Reflector: One of the Treasury Department's proposed regulations would block Cnano from building the factory regardless of Kelly's decision.

The offices of Whitmer and Kelly did not immediately respond to requests for comment.

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