The US Department of Homeland Security agents and personnel from other government agencies suddenly conducted searches at 28 locations, including the factories of Fuyao Glass America Inc. (“Fuyao America”). Fuyao America has issued a statement saying they are cooperating with the investigation. Experts believe that the incident may be related to the US-China trade war.
On July 26 local time, the US Department of Homeland Security agents and personnel from other government agencies conducted searches at 28 locations, including the factories of Fuyao America. Officials from the US Department of Homeland Security stated that the focus of this investigation was on money laundering, potential human trafficking, labor exploitation, and financial crimes. They emphasized that the investigation poses no threat to the public.
Fuyao America stated in a press release that they intend to fully cooperate with the investigation.
Fuyao Glass is touted as the world’s largest automotive glass manufacturer, founded by Chinese businessman Cao Dewang. The company’s 2023 annual report showed that half of its revenue comes from both domestic and international markets, with foreign assets accounting for 37.8% of total assets.
Fuyao America is the subsidiary of Fuyao Glass in the United States, with its main assets located in factories in Ohio and Illinois. The Ohio factory was acquired from General Motors in 2014 by Fuyao Glass and transformed into an automotive glass factory. The company claims that the Ohio factory is the largest automotive glass production facility in the world.
In 2017, Fuyao agreed to pay a $100,000 fine for violations involving machine safety, electrical hazards, and a lack of personal protective equipment.
According to the Dayton Daily News, earlier, a resident of Miami complained that up to 25 men moved into a neighboring house and were transported to various shifts at the Fuyao America factory.
Wang Xiaowen, Assistant Researcher at the Institute of Communist Party Military and Operational Concepts of Taiwan’s Institute for National Defense, told Dajiyuan that according to the US Department of Homeland Security, Fuyao America is accused of financial crimes and labor exploitation. One possibility is that internal American employees may have reported it because American workers are less likely to accept the long working hours and labor practices common in Asian companies. Another possibility is that the US Department of Homeland Security has evidence of financial crimes at Fuyao America, and that Fuyao America may be involved in international money laundering, requiring the US Department of Homeland Security to understand the situation at the local factory.
“Thirdly, this may be the US starting various investigations against China’s enterprises with the highest global market share, and it is related to the US-China trade war.”
Regarding the impact of the incident on US-China relations and economic and trade relations, Wang Xiaowen stated that the CCP may soon conduct a field investigation into American companies in China under some pretext. US-China relations are deteriorating, and economic and trade relations are also shrinking. However, the aftermath of the incident will only become clearer and more stable after the US presidential election.
“However, the Third Plenary Session of the CCP is considered by Japanese media to be Xi Jinping’s preparation for decoupling from the US and reelection, perhaps the CCP has also realized that decoupling from the US and reducing economic and trade dependence is the future trend.”
Chung Chit Tung, Assistant Researcher at the Institute of National Defense of Taiwan, told Dajiyuan that the US investigation into this event is significant because Fuyao is a prominent company both domestically and globally in China. The fact that Fuyao’s foreign assets account for 37.8% indicates Fuyao’s ambition globally.
“This Chinese company in Ohio, Ohio is known as a critical swing state in the election, coupled with its role as a Chinese company, it will naturally attract attention.”
Regarding the main items Fuyao is being investigated for, Chung Chit Tung said that the United States is a country governed by law, and there must be a significant level of criminal evidence for an investigation to begin.
Chung Chit Tung believes that since Fuyao began investing comprehensively in the US in 2010, labor issues have frequently arisen, and they have been fined by local governments. If this investigation is due to labor issues, it won’t be too surprising. Additionally, this incident reflects the current tension in US-China relations to a significant degree.