United States Republican lawmakers are urging the Biden administration to ban Chinese battery industry leaders Ningde Times (CATL) and Gotion High-Tech from exporting products to the US, citing their supply chains’ involvement in forced labor.
On Thursday, John Moolenaar, a Republican lawmaker from Michigan and chairman of the House Bipartisan China Task Force, revealed new evidence in two open letters to the Department of Homeland Security, indicating that China’s major battery manufacturers Ningde Times and Gotion High-Tech are connected to state-supported forced labor and the ongoing genocide against the Uyghur people.
The open letters stated, “The special committee have found concrete evidence linking the supply chains of Gotion High-Tech and Ningde Times to forced labor within China and the ongoing genocide against the Uyghur people.”
The letters provided detailed evidence of the disturbing relationships between these two battery companies and the paramilitary organizations in China, forced labor, and the Uyghur genocide. Despite connections to China’s military-industrial complex and state-supported forced labor programs, both companies continue to operate and expand in the US.
Lawmakers are calling on the Forced Labor Enforcement Task Force to “immediately” add Ningde Times and Gotion High-Tech to the entity list as stipulated by the Uyghur Forced Labor Prevention Act (UFLPA).
The open letters were jointly issued by Moolenaar, House Homeland Security Committee Chairman Mark Green, Senator Marco Rubio, among others.
Ningde Times stated that the company is committed to maintaining responsible supply chains. According to a spokesperson quoted by The Wall Street Journal, “Any claims regarding CATL’s use of forced labor or any connection to forced labor are absolutely false.”
Last year, following an investigation by a Republican-led committee, Ford Motor Company briefly suspended a $3.5 billion investment plan to build a battery factory in Michigan that would utilize Ningde Times’ technology. Upon resuming the project, they had to scale back investments and production capacity. Legislators believe this project would allow China to dominate the US electric vehicle industry.
As reported by Politico’s E&E News, Ford spokesperson T.R. Reid mentioned that all Ford suppliers must adhere to the company’s Supplier Code of Conduct, outlining requirements and expectations regarding human rights, environment, and responsible material sourcing.
Reid stated, “As you know, we plan to access technology from CATL for our US factory under construction to produce LFP electric vehicle batteries owned and operated by Ford. Regardless of their relationship with us, all of Ford’s suppliers must comply with our Supplier Code of Conduct.”
Gotion High-Tech received significant investment from Volkswagen China with plans to build its factory in Michigan, which is also under scrutiny.
Lawmakers noted that Ningde Times and Gotion High-Tech are linked to the Xinjiang Production and Construction Corps, a paramilitary organization in Xinjiang that has been sanctioned by the US and listed on the entity list. The Chinese authorities have repeatedly denied any human rights violations in the region.
In February of this year, Volkswagen reported that some of its vehicles contained components from companies on the entity list, leading to the detention of thousands of Porsche, Bentley, and Audi vehicles at US ports. The company faced criticism from Congress for jointly owning a factory in Xinjiang with a Chinese state-owned company.
Department of Homeland Security spokesperson Naree Ketudat stated that the department would directly respond to Congress’ letters through official channels and continue to provide proper oversight responses to Congress.